Industry Analysis & Industry Trends
Industry revenue is anticipated to have expanded over the past five years despite falling during the first year of the period. Construction activity is projected to have increased, which enhanced demand for wires and cables as the construction sector is the largest downstream market for the industry. Increases in electricity and telecommunications infrastructure construction activity also aided industry expansion. However, the benefits were restricted because fibre-optic cables, which are excluded from the industry, increased in popularity in the telecommunications sector. Meanwhile, exports are expected to have trended upwards and contributed positively. However, import competition intensified and curtailed industry expansion as many firms lost domestic market share... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entering the industry are moderate. They include the cost of establishing manufacturing facilities, customer relationships and product distribution arrangements; the presence of economies of scale and scope; and the costs of obtaining technology.
The start-up costs required for a prospective entrant are relatively high, which can often deter entrepreneurs. This is compounded by the fact that the larger firms can benefit from economies of scale, allowing them to offer their products at lower prices. Large firms have more leverage when negotiating with raw material suppliers, which can make a big difference because these costs absorb a large proportion of revenue.
New entrants need to gain a viable customer base because underused plants are less profitable. For.. purchase to read more