The Cable Assembly Supply Channel - A Shifting Landscape
By Lynda Nolen

Cable assemblies have been around just about as long as connectors, carrying signal, and in some cases signal and power, from one piece of equipment to another. Similar to the connector, over the years, the cable assembly has evolved from a rudimentary device attaching one connector to another, to a sophisticated, often complex device able to withstand the rigors of both man and environment. Also similar to the connector, along with the physical and mechanical transformation of the cable assembly has come a transformation in the available channels to market.

In the early stages, cable assemblies were primarily built by the OEMs using them or offering them with their equipment. Connectors and cable were acquired from the manufacturer, or in some cases a distributor. The necessary tooling was developed or procured, and the cable assemblies were built as needed. For the larger OEMs, this often meant investments in capital equipment to build the cable assemblies often sat idle for lengthy periods of time, inventory with erratic or low turns had to be maintained, insured, and accounted for, and additional work needed to be found during periods of low or no production for personnel with the knowledge and experience to build these assemblies. For the smaller OEM, whose requirements were minimal, this scenario was compounded.

At last, the cable assembly manufacturer, who focused on nothing but building cable assemblies, took its place in the industry. This provided a channel to market that allowed the OEM to concentrate on what they did best and still have quick and reliable access to quality cable assemblies when they needed them.

Initially, most of these operations were small, often starting in someone’s garage or in rented space in an industrial strip mall setting. The assemblies, although getting more sophisticated, often centered on flat cable or crimp and poke technology. Soldering, still a popular method of termination, but one that required more expertise, was offered by a few of the more advanced facilities, but those were few and far between.

As the OEMs caught on to the advantages of having cable assemblies built by someone who focused on them, so did the demand for good, reliable cable assembly manufacturers. During the 1970s, the number of cable assembly manufacturers grew at an astounding rate.

Entering the 1980s, a period rife with product allocations, rising raw material prices and lengthy product lead times, the role of the electronic distributor began the process of evolving into what they are today. In the world of connectors, the distributor no longer just stocked completed connectors, many began to assemble connectors from piece parts, while others modified completed connectors to meet customer requirements.

During this same period, many electronic distributors witnessed the continued rise in demand for cable assemblies and leveraged their distributor pricing to test the waters themselves. Distributors, in addition to offering the components necessary to build cable assemblies, also began to offer customer specific cable assemblies. For many distributors, not only did this increase their value to their end-customers, but it often increased their value as a distributor, providing new or expanded connector franchises.

Although many distributors, in particular the larger regional and national distributors, would later exit the market, based primarily on the increased complexity of the assemblies and local, state, or federal product or environmental regulations, many others would establish subsidiaries or purchase established cable assembly manufacturers.


As we entered the 1990s although there remained a growing number of small to mid-size cable assembly manufacturers, we also saw the emergence of some of the world’s largest cable assembly manufacturers. These were the companies with multiple locations, in multiple countries, who offered advanced capabilities, including over-molding and fiber optic assembly. These companies manufactured elaborate harnesses that encompassed a variety of cable and connector types and were equipped to provide the necessary testing that these assemblies required.


This was also the period during which many companies, concerned with increasing environmental regulations and rising labor rates, began to shift many cable assembly operations to lower cost regions. Not only were hundreds of maquiladoras set-up along the border of Mexico, but manufacturing of many of the commodity type assemblies was shifted to the Asia Pacific and China region.

For the domestic cable assembly supplier, both in the United States and Europe, this meant to remain in business, additional value propositions had to be added to their existing offering. During this period individual cable assembly manufacturers would begin the process of focalization.

The 21^st century saw a continued shift of cable manufacturing to lower-cost regions. This procession would be aided by advancements in connector design, cable, and tooling, which allowed more and more assembly types to be classified as commodity. Connector standardization, one of the most influential factors in the realm of equipment manufacturing, also permitted cable assembly manufacturers to focus on particular connector cable assembly types like USB, HDMI, and IEEE1394. To support these cable assembly manufacturers, this period also saw a drastic increase in the number of connector manufacturers who established factories or joint ventures in these regions, as well as the birth of hundreds of Chinese and Asia Pacific connector manufacturing and cable assembly companies.

While connector standardization played a major role in the shift of commodity type assemblies during this period, the increased demand for miniaturization, speed, and bandwidth also introduced a number of new opportunities for the manufacturer of cable assemblies. The demand for fiber optic assemblies increased, as did the demand for copper high-speed assemblies. Although in most instances, this required a shift in cable type, termination equipment, and level of training, it also presented the challenge of being able to test completed assemblies. For the connector manufacturer, this opened new doors, providing them a value-added proposition that was difficult for many traditional cable assembly manufacturers to compete against.

As we embark into the 2010s, we find that this evolution of connector standardization and fast turnaround, coupled with the ongoing demand for high-speed bandwidth, has lead to the development of four very distinctive channels for market for cable assemblies. Although multiple distinctive channels may exist in the same market, or even at the same customer, because of their particular product or application focus, each is able to thrive because of what they offer.

Cable Assembly Manufacturer
The cable assembly manufacturer primarily focuses on the manufacturing of cable assemblies. Individual cable assembly manufacturers can focus on different types of assemblies, have different certifications, and specialize in large production runs or small quick-turn business. A manufacturer that focuses totally on cable assembly manufacturing is generally viewed by the connector or cable manufacturer as an original equipment manufacturer.

Cable assembly manufacturers based on type of assembly, customer-specific or industry-specific, also use a number of channels to sell their products. If the assembly is customer specific, they act as the primary supplier. If the cable assembly is industry specific, their completed assemblies are often carried by stocking distributors.

Due to the growing increase in safety and environmental regulations, today’s cable assembly manufacturer also tends to be more industry-focused. Based on application, cable assemblies may require FDA, AS9100, CE, or ATEX certification, in addition to UL, CSA, or TUV. Facilities may need to carry ITAR, ISO9001, or TS16949 certification.

Connector Manufacturers
Recognized first as a manufacturer of connectors, then as a supplier of cable assemblies, connector manufacturers that also offer standard and custom cable assemblies are one of the fastest growing sources of cable assemblies. If you examine the top 10 connector manufacturers in the world, you will see that every one of them also supplies cable assemblies. Increase this to the top 50 connector manufacturers in the world, and you find that 98% offer cable assemblies. While many offer commodity type assemblies manufactured in lower-cost regions that incorporate their connectors, most focus on more sophisticated assemblies that are customer-specific and require advanced testing or special packaging.

Catalog Distributor
Another fast-growing source for cable assemblies is the catalog distributor. Long recognized for their broad offering, low minimum, and off-the-shelf delivery, catalog distributors have become a primary source for small quantities to the engineer or hobbyist. Catalog distributors have also found a role as a supplier of commodity type assemblies manufactured by the large cable assembly or connector manufacturer. Their cable assembly offerings are generally more limited and centered on commodity type products in standard lengths and arrangements.

Electronic Distributor
Electronics distributors are classified in a number of ways, including territory covered (local, regional, or national) and types of products stocked (connectors, passive-electro mechanical, computer products, or active components), and provide two types of channels to market for cable assemblies. Some electronic distributors stock only completed assemblies, generally customer-specific or industry specific that are manufactured by one of their franchised suppliers. Others though, act as the manufacturer of the assembly. They build to customer specifications, generally having to purchase connectors, cable, or accessories they do not stock.

Independent of which channel is used, the manufacturing of cable assemblies is big business. In 2010, cable assemblies generated more than $100 billion in sales and are expected to exceed $130 billion in the next five years. Although some channels may grow faster than others, because each channel offers a unique value-added proposition, they all fulfill the ultimate goal: providing the end customer with a timely, high quality, competitively priced cable assembly.

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Lynda Nolen Director of Databases, Regions-Products-Markets, Bishop & Associates Inc. Lynda Nolen has been in the interconnect industry for over 30 years. She has worked in sales, sales management, marketing, and product management for such companies as TRW Electronics Components Group, Sunbelt Components, Cinch Connectors, Arrow Electronics, PEI Genesis, and Delphi Interconnect. Nolen has extensive experience in competitive cross-referencing, drawing, web and catalog review, new product introduction programs, harness and connector assembly programs, account management, and customer service programs. Lynda received her Bachelor of Arts degree from Roger Williams University in Rhode Island in 1979, and has completed various electrical engineering courses.