According to recent market studies, office construction will steadily advance in 2007 and this trend will continue through 2011. In the US only, this market is expected to grow by 7% in 2007 to $58.4 billion. This 7% growth rate will take this market to $62.5 billion in 2008. In the long run growth in the office construction market is expected between 6% and 7% annually upto 2011 and it will reach $75.1 billion by then.
This forecast could prove to be profitable for electrical fittings and cable industry worldwide. According to industry experts, this growth in office construction market will be one of the major driving forces for electrical fittings industry in near future.
Increased Employment
In 2006, employment in the Electrical Fittings and Cable Industry has gone up by 8% globally, while the wages decreased slightly.
Increased Shipment Costs
Value of Shipments increased 8%, and Total Capital Investments decreased 17%.
Rising Zinc & Copper Prices - A Challenge to Electrical Fittings Market.
The price of zinc and copper has gone up recently, posing new challenges for the industry. As a result, cost of zinc die cast fittings are up 50 percent or more. The price of weatherproof boxes and covers and other products containing zinc have jumped significantly in price as well.
Few companies are considering steel as an alternative to zinc die cast. But, there are a lot of unique fittings that have zinc in them and the steel offering isn't as comprehensive as the die cast.
