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MARKET OVERVIEW
Stable or growing demand for core sectors like OEM, Elevator and Automotive contrasted
with a downturn for renewable energy, hit worldwide by the ending of incentives.
Trends on Industrial cable markets in 2013 displayed
considerable inconsistencies between the various business
lines and large differences between the diverse geographical
areas.
As already seen with the Accessories business, the common
trend, even in the industrial cables business, was one of more
fragmented and erratic demand, concentrated on smaller scale
but technologically more complex projects than in the past,
accompanied by more exacting requirements regarding quality
and after-sales service.
Within the industrial business, some market segments
showed stable or growing demand, like the strategic OEM,
Elevator and Automotive markets, while others experienced
a contraction in volumes, like the renewable energy market,
which saw a worldwide slump in demand with the ending or
postponement of government incentives to develop solar or
onshore wind farms.
In the Oil&Gas and port facilities sectors, international
demand declined due to delays in several projects in the
Middle and Far East, while nonetheless remaining strong
in South America and Oceania.
Demand in the industrial infrastructure and mineral resources
sectors continued to be weak in 2013 and below 2012, primarily
due to falling commodity prices and significant production
overcapacity.
As far as applications for the transport sector are concerned,
the major European players adopted a cautious stance due to
poor visibility as to when to resume investments and to recent
deficit-cutting policies in the Eurozone’s major economies;
demand in other parts of the world remained buoyant. One
particular exception was the rail transport sector in North
America, which posted record demand in 2013 as a result
of urban and suburban railway reconstruction following the
hurricane that hit the east coast in the second half of 2012.
The divergent pattern of demand described above was also
confirmed in the automotive sector. While volumes increased
on the prior year in areas outside Europe, mainly the Americas
and Asia, the restrictive financial policies in Europe forced the
ending of incentives in support of the automotive industry
with a consequent impact on the level of demand in local
markets.
Lastly, renewable energy was the sector within the industrial
business that most suffered from a slump in demand.
This was primarily the case in Southern Europe, where the
restrictive financial policies adopted by the main governments
either cut special incentives or made it more difficult to access
credit for onshore wind projects.
