By Justine Irish D. Tabile, Reporter
THE wire and cable industry, which has had to weather a slowdown in construction, volatile raw material prices, and competition from imports, could be propped up by growing demand from the power sector due to grid expansion and electrification, American Wire and Cable Co., Inc. (AmWire) said.
AmWire President Samuel Craig Awad said the industry continues to face challenging conditions, making growth in the mid-single digits difficult to achieve.
“There are challenges such as the slowdown in construction characterized by the glut in unsold condos and high vacancies in office space. There is high volatility in raw materials such as copper, aluminum and insulation materials,” he told BusinessWorld.
“Also, the market has been besieged by imported low-cost but substandard construction materials. The expected medium-term 6% to 7% growth rate that industry research points to may be more difficult to achieve,” he added.
He said the main opportunity lies in “technology-driven products, including cables that support renewable energy projects and (making manufacturing) more sustainable.”
“This can also moderate the influx of imports of finished goods, which are usually non-compliant with Philippine standards,” he added.
In particular, he said the power industry has been a source of growth, partly offsetting soft demand from construction.
“This growth is driven by the expansion of the power grid and electrification, including the integration of renewables. So there is a significant demand for cables for transmission lines, substations, and inter-island connections,” he said.
He said electric vehicle infrastructure remains underdeveloped and is not having much impact at this point.
To remain competitive, he said that the company has been investing in new machinery and technology.
“We have invested in new, more efficient machines that are more advanced than what the other wire and cable companies have,” he said.
“We have also invested in intelligent systems to enable us to operate with greater precision and insight, resulting in even higher quality and sustainable growth across our manufacturing footprint. This is part of our progress towards adopting standards in Industry 4.0,” he added.
To help offset high costs and address water use, he said the company also invested in solar powered water systems and a wastewater treatment plant.
Asked about the company’s plans to expand, he said that the company’s capacity “is more than adequate to meet present and future demand.”
“The high-speed automated lines and streamlined plant operations allow us to produce diversified products and have equipped us to meet any expected demand increase,” he said.
“Ultimately, our goal is not just to produce more cable, but to produce smarter — scaling sustainably while delivering higher value and performance to our customers,” he added.
Established in 1954, AmWire pioneered wire and cable manufacturing in the Philippines.