Wired up: Volatile copper prices have decreased industry revenue and increased uncertainty

Revenue in the Copper Production industry is expected to decline at a compound annual rate of 8.5% over the five years through 2017-18 to £617.2 million. The performance of the industry is closely tied to the world price of copper, which fell significantly over the past five-year period due to stagnant growth in the construction sectors of the world’s most developed countries. Slowing growth in China also contributed to the decline in copper prices including a fall of 19.7% in 2015, due to low demand from emerging markets. However, the market is expected to stabilize in 2017, with copper prices expected to rise by an estimated 19.9% over the year. In spite of this, industry revenue is expected to continue to fall, declining by an estimated 3% in 2017-18...read more.

Industry Statistics & Market Size
Revenue
£617m
Annual Growth 13-18
-8.5%
Forecast Growth 18-23
Profit
Employment
2,449
Businesses
38

Industry Threats & Opportunities

  • Growth in construction is expected to lift demand for electrical conduction products
  • Increased demand from the construction sector has slowed the decline of industry revenue
  • Rising residential and commercial building activity is expected to support industry revenue
  • Industry Report - Industry Investment Chapter

    The industry has a moderate level of capital intensity. For every £1.00 spent on equipment, an estimated £4.43 is spent on wages. Wages are forecast to represent 10.6% of revenue in 2017-18, while net capital expenditure account for 2.4% of revenue. Like most manufacturers, copper wire, pipe and shape producers use heavy equipment and machinery to heat, cut and manipulate raw materials. Wages have risen slightly as a share of revenue over the past five years, on the back of abrupt revenue contractions. However, spending on depreciable assets has risen at a faster rate over the past five years as firms have ramped up investment in new capital equipment. This is a trend that is likely to continue into the future as firms attempt to reduce their reliance on manual labour...purchase to read more.

    Additional Insights for the Copper Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Copper Production Industry are

  • Ability to accommodate environmental requirements
  • Guaranteed supply of key inputs
  • Output is sold under contract - incorporate long-term sales contracts
  • IBISWorld analysts also discuss how external factors such as Demand from other electronic wire and cable manufacturing and World price of copper in the Copper Production industry impact industry performance..

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    What's in this report

    What is the Copper Production Industry?

    Companies in this industry produce copper and copper alloys, such as bronze and brass. The main products in the industry are wires and cables, but companies also produce tubes, rods and pipes.

    Industry Products
  • Copper wire and cable
  • Copper tubes, pipes and fittings
  • Copper busbars
  • Industry Activities
  • Producing copper from ores and scrap
  • Manufacturing copper wire and strip
  • Manufacturing copper alloys
  • Manufacturing tubes, pipes and pipe fittings from brass
  • Semi-copper
  • Manufacturing copper rods
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from other electronic wire and cable manufacturing
  • World price of copper
  • Demand from electricity distribution and control apparatus manufacturing
  • Demand from plumbing, heating and air conditioning installation
  • Demand from fibre-optic cable manufacturing

  • Current Performance
  • Copper prices drop
  • European trade
  • Downstream demand
  • High in fibre
  • Chart: Revenue Growth

  • Industry Outlook
  • New applications
  • Tarnishing revenue
  • EU trade
  • Table: Copper Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Copper Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Electricity Distribution & Control Apparatus Manufacturing
  • Tap & Valve Manufacturing
  • Motor Vehicle Parts & Accessories Manufacturing
  • Plumbing, Heating & Air Conditioning Installation

  • Key Selling Industries
  • Electricity Supply
  • Metal Forming Machinery Manufacturing

  • Products & Services
  • Copper wire and cable
  • Copper tubes, pipes and fittings
  • Other
  • Copper busbars
  • Chart: Copper Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Electrical and electronic equipment manufacturers
  • Construction sector
  • Transport and automotive sectors
  • Other
  • Chart: Major Market Segmentation for the Copper Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Copper Production

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Copper Production Industry

  • Industry Globalization
    Mueller Europe Ltd, Prysmian Cables & Systems Ltd, The Lawton Tube Company Limited, Pegler Yorkshire Group Ltd,
  • Table: Mueller Europe Ltd - financial performance
  • Table: Prysmian Cables & Systems Ltd - financial performance
  • Table: The Lawton Tube Company Limited - financial performance
  • Table: Pegler Yorkshire Group Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Copper Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Copper Production Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Alloy
  • A mixture of two or more metals.
  • Busbar
  • Copper strips used to conduct electricity in substations and distribution boards.
  • Ingot
  • A mass of metal, such as a bar or block, that is cast in a standard shape for convenient storage or shipment.
  • Ore
  • A rock or mineral that has enough metal in it to make it worth extracting. In the case of copper, it is worth extracting when there are approximately 2 kilograms of copper per 1 metric ton of ore.
  • Rod
  • A thin straight bar
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Copper Production market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Copper Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Copper Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Copper Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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