The Cable Assembly Industry Update

After declining 24.6% in 2009, the worldwide cable assembly industry grew 29.8% in 2010. The region with the most growth was China, at 41%. The region with the least growth was North America, at 23.9%.

2010 Sales by Region of the World

Cable assembly and connector sales have migrated toward China and Asia Pacific during the last 20 years. China will overtake North America’s share of the market in 2011, and surpass Europe’s share of market in 2013. The following charts reflect this trend since 2001.

Share of Market by Region of the World

2011 Forecast

Bishop is projecting 2011 to have moderate, single-digit growth.

Positive factors affecting 2011:

• The United States GDP beat its growth forecast for 2010.

• World GDP is projected to be positive, at 2-3%. Expectations are higher in China and Asia Pacific.

• Consumer sentiment and spending are up.

• Stock markets are up worldwide.

• Automotive sales have increased.

Concerns for 2011:

• Continuing sovereign credit default in Europe.

• High deficit spending in the Western economies. (Will we see more taxation or less spending?)

• Tightening of China’s credit market to cool off their economy and inflation.

• Unemployment continues at high rates in Western countries.

• Housing markets remain stagnant.

• Further social unrest in Arab countries is impacting oil and gold prices.

The bottom line:

• Sales growth of 5.5% will take the worldwide cable assembly market to $121.6 billion.

• Regionalization and cost pressures will continue to shift sales to China and Asia Pacific.