|
|
|
Wire and Cable: Harnesses, Fiber, Copper Wire, and Coax
2001-2006
a market research report
|
|
The US telecommunications
industry is experiencing one of the worst slumps in its history.
Order terminations, buildout cancellations, bankruptcies, collapsing
stock prices, deteriorating margins, and questionable business
practices have left the euphoria felt by the industry little more than
a year ago in tatters. Major companies now expect the current
industry malaise to persist throughout the remainder of 2002.
How did this happen?
What further ripple effects could occur throughout the industry?
Most importantly, what can firms do to navigate safely through these
rough waters? Wire and Cable: Harnesses, Fiber, Copper Wire,
and Coax 2001-2006 examines these issues and others from
the perspective of the wire and cable suppliers—one of several
functional common core component sectors that collectively underpin
the entire telecommunications industry.
|
|
|
Report Excerpt
|
|
Wire and Cable Industry Overview
Insight estimates that total revenues for
all functional common core component sectors (including wire and cable,
integrated electronics enclosure packaging, construction, and power
plants and systems) in the US will increase from $25.3 billion in 2001
to $33.4 billion in 2006, representing a modest CAGR of 5.7 percent.
These conditions reflect a slow rebound from the softness that began in
late 2000. Wire and cable revenue will account for more than one quarter
of the overall functional common core components industry revenue
throughout the forecast period-28 percent in 2001 and 28.3 percent in
2006. For a more in-depth look at the other functional common core
component segments, consult Insight's reports entitled Telecommunications
Construction and Professional Services 2001-2006, Integrated
Electronic Enclosure Packaging 2001-2006, and Telecom
Power Plants and Systems 2001-2006.
Insight's forecasts segment the wire and
cable sector by:
- Cable harnesses,
- Fiber optics,
- Copper wire, and
- Coaxial cable.
Key Success Factors for Wire and Cable
Suppliers
A gray market is becoming quite
pervasive, as providers unload excessive inventories of wire, cable, and
related equipment. Operators are selling these products to other
operators at discounts below current list prices posted by vendors. Gray
market sales will have a direct effect on the original manufacturers'
inventories, which are already at record levels. Now and in the future,
successful companies will be those that are able to manage inventory
levels efficiently as demand changes.
The key trends for success
that wire and cable firms need to address are:
-
Addressing oversupply
problems
-
Meeting demands for
new construction and operator buildouts
-
Following key industry
standards for products, paying attention to the requirements of
the installed base.
-
Addressing a key shift
in the supply chain infrastructure, whereby many large equipment
vendors are outsourcing their manufacturing operations
-
Improving available
technology in often-neglected areas
The introduction of new operators and
services often requires the new construction of telecom buildings, the
refurbishment of non-CO facilities, and substantial re-configuration of
existing COs. Among a slew of other equipment, these facilities are
required to house copper, fiber-optic, and coaxial transmission systems.
New construction, while tempered by the slowdown, still exerts a
positive effect on demand in the wire and cable sector. The investments
required for constructing and maintaining the existing plant and
infrastructure, as well as superimposing new technologies, amount to
billions every year.
Successful vendors will pay close
attention to product standards and how to integrate new technologies
within the network. Standards have played a key role in increasing the
use and acceptance of telecom infrastructure products and core
components. Network operators often struggle to implement numerous new
infrastructure products with less-than-stable specifications and
standards. Vendors also need to understand the true nature of the
installed base of equipment. Despite the many advantages of new and
improved standardized products, ample quantities of legacy copper,
fiber-optic, and coax cables are already buried under cities, laid along
highways and railroads, and strung over poles and towers. This
infrastructure will continue to be used for decades.
More and more, basic manufacturing is
being outsourced to third-party electronic manufacturing suppliers (EMSes).
The EMS firms (such as Flextronics International and Sanmina-SCI) have
formed strategic relationships directly with network operators and wire
and cable equipment suppliers to coordinate logistics, installations,
manufacturing, and e-commerce interactions. The suite of products and
services that EMSes offer includes:
- Manufacturing;
- Integration of enclosures;
- Power supplies;
- Wire and cable;
- Customer service; and
- Online customer help desks.
Previously, many of the products and
services that EMSes offer were provided solely by the functional common
core component suppliers.
In short, only by learning the lessons of
effective supply chain management will the operators and their suppliers
be able to navigate safely through the current rough waters that have
already swamped so many in the industry.
Back to Top
|
|
Market Segmentation
|
|
|
- US Wire and Cable Revenue
- Cable Harnesses
- Insulated Fiber Optics
- Copper Wire
- Coax
Back to Top
|
|
Table of Contents
|
|
|
Chapter I
EXECUTIVE SUMMARY
1.1 The Crash of 2000-2001
1.2 Wire and Cable Industry Overview
1.3 Key Success Factors for Wire and Cable Suppliers
Chapter II
MARKET OVERVIEW
2.1 Definitions and Background
2.1.1 AT&T Establishes Design and Engineering Standards
2.1.2 Western Electric and Bellcore
2.1.3 AT&T's Bell System Specifications
2.1.3.1 New Equipment Building Systems Standards
2.1.3.2 Bellcore Updates NEBS
2.1.4 Role of Functional Common Core Components
2.2 Wire and Cable Overview
2.2.1 Early Network Wiring Characteristics
2.2.2 Interconnection Interface
2.2.3 Premises Wiring
2.2.4 Outside Wiring
2.2.5 Wiring Types
2.2.5.1 Copper Wire
2.2.5.2 Optical Fiber
2.2.5.3 Coax and Hybrid Fiber/Coax Cable
Chapter III
INDUSTRY TRENDS AND CHARACTERISTICS
3.1 Historical Evolution of the Market
3.1.1 The Monopoly Environment
3.1.2 The Emergence of Local Competition
3.1.3 Navigating Current Market Uncertainty
3.2 Factors Influencing New Product Acceptance
3.2.1 Technological Rate of Change
3.2.2 Standardization Process
3.2.3 Economic Reasons for Deploying New Technologies
3.3 Co-Location Trends
3.3.1 Mandated Co-Location Requirements
3.4 Challenges Posed by Industry Slowdown
3.4.1 Impacts on EMS Suppliers
3.4.2 Impacts on Wire and Cable Suppliers
3.5 Shifts in Marketing Focus
3.5.1 Historical Marketing Focus
3.5.2 Transformations in Marketing Strategy
3.5.3 Various Distribution Channels
3.5.3.1 Wholesale Distribution
3.5.3.2 Direct Sales
3.5.4 The Typical Purchasing Process
3.5.5 New Marketing Avenues and Promotional Events
3.6 Supply Chain Structure
3.6.1 Supply Chain Components
3.6.2 Traditional vs. Improved Supply Chain Interactions
3.6.3 Web-Based Transactions
3.7 Support Services for Procurement
3.7.1 Program Management
3.7.2 Key Account Support Programs
Chapter IV
VENDORS
4.1 Introduction
4.2 Electronics Manufacturing Services Firms
4.3 Wire and Cable Firms
Chapter V
FUTURE TRENDS AND OPPORTUNITIES
5.1 Key Challenges
5.2 Meeting Support Requests of Providers
5.2.1 Scarcity of Qualified Personnel
5.2.2 Functional Support Services
5.3 The Move Toward Outsourcing
5.3.1 Manufacturing Outsourcing
5.3.2 Logistics Outsourcing
5.4 Wire and Cable Trends
5.5 Service Provider-Specific Opportunities
5.5.1 CO Growth-on-Demand
5.5.2 Greenfield Locations
5.5.3 Co-Location
5.5.4 Carrier Hotels
Chapter VI
WIRE AND CABLE INDUSTRY FORECAST
6.1 Introduction
6.2 Methodology
6.3 US Economic Outlook
6.4 Forecasts
Appendix
GLOSSARY
Table
of Figures
Chapter I
I-1 Telecom Components Revenue, Wire & Cable vs. Other Segments,
2001-2006 ($Millions)
Chapter II
II-1 The Role of Functional Common Core Components within a Central
Office
II-2 Hybrid Fiber-Coax Architecture
Chapter III
III-1 Proposed Multi-Tenant Building Specification: Conceptual
Layout
III-2 Multi-Tier Distribution Channel Used by Functional Common Core
Component Firms
III-3 Supply Chain Management Framework
III-4 A Typical Program Management Model
Chapter VI
VI-1 Telecom Components Revenue, Wire & Cable vs. Other
Segments, 2001-2006 ($Millions)
VI-2 US Wire and Cable Revenue by Type, 2001 vs. 2006
VI-3 US Cable Harnesses Revenue, 2001-2006 ($Millions)
VI-4 US Insulated Fiber Optic Cable Revenue, 2001-2006 ($Millions)
VI-5 US Copper Wire Revenue, 2001-2006 ($Millions)
VI-6 US Coax Cable Revenue, 2001-2006 ($Millions)
Table
of Tables
Chapter I
I-1 Key Elements for Success of Wire and Cable Firms
Chapter II
II-1 Updates to Original NEBS Specifications
II-2 Premises Wiring Categories
II-3 Standardized Digital and Optical Transmission Rates
II-4 Central Office Terminations of Loop Plant, Equipped Channels,
1994-1999
II-5 Central Office Terminations of Loop Plant, Working Channels,
1994-1999
Chapter III
III-1 Critical Issues for the Wrier and Cable Industry
III-2 Representative North American Telecommunications Standards
Organizations
III-3 Proposed Specifications for Multi-Tenant Building Telecom
Equipment Rooms
III-4 CLEC Co-Location Demands
III-5 Advanced Services Order Co-Location Requirements
III-6 Key Near-Term Challenges Facing Network Operators
III-7 Products Manufactured by EMS Firms
III-8 Typical Companies Outsourcing Manufacturing to EMS Firms
III-9 Major EMS Acquisitions of Wire and Cable Suppliers
III-10 Purchasing Criteria of Typical Customer Types
III-11 Key Criteria Considered by Service Providers When Selecting a
Vendor
Chapter IV
IV-1 Strategic Acquisition Objectives for Functional Common Core
Component Suppliers
Chapter V
V-1 Functional Support Services Offered to Network Operators
V-2 Potential Benefits and Problems of Outsourcing Manufacturing and
Logistics
V-3 Outsourcing Vendor Capabilities Checklist
V-4 Fiber Terminations at Customer Premises, DS-1 vs. DS-3 & Higher
Rate, 1994-1999
Chapter VI
VI-1 US Wire and Cable Revenue, 2001-2006 ($Millions)
Back to Top
|
|
Pricing Information
|
|
|
Hard Copy Price
$ 600
Electronic Copy Price
(PDF
License Descriptions)
$ 870 Single-User Printable PDF
$ 1200 6-Seat Printable PDF
$ 1500 Unlimited Corporate-Wide Distribution
Back to Top
|
|
Telecom
Market
Research,
