Coming out of a turbulent 2018 marked by strong demand coupled with limitations in both compound availability & manufacturer production capacity, the current forecast for 2019 indicates a sluggish recovery that won’t begin to materialize until Q2. Due to growth of fluoropolymer use in both the automotive and food & beverage industry, compound manufacturers continue to reallocate resources resulting in additional strain as market focus continues to evolve. The fluoropolymer market is expected to register a compound annual growth rate of 6% by 2022.

Current data suggests PTFE compound availability will improve in Q2 with ETFE following later in the year. Fluorpolymer wire & cable manufacturers struggling with significant backlogs are likely to take a measured approach to recovery once compound availability improves to avoid a sudden and significant drop in demand. If the current projections for strong demand in 2019 are accurate, this cautious approach could cause additional delays that may further slow recovery well into Q3. Additional price increases on fluoropolymer products are also expected to impact the market in the coming months.

As we enter the 4th straight year of defense budget increases, the current administration projects spending to continue at this high level into the future. As a result, the military services and defense industry are making their plans on the basis of this high funding level. 2019 will likely see a continuation of the strong demand from FY18, putting additional pressure on both manufacturing and distribution to work diligently toward reducing material flow inhibitors.

As your go-to supplier for Mil-Aero wire & cable, Whitmor/Wirenetics is committed to work closely with our supply chain to ensure our partners are well positioned. We continue to employ strategies to reduce lead times and mitigate price increases in addition to providing excellent customer service. For more information on how we can help you reach your goals for 2019, give us a call today.

1-800-822-WIRE

What’s the difference?

A distributor’s main focus is the selling of finished goods, rather than their production. This allows the distributor to focus on the customer – providing better service, quicker delivery, and competitive pricing. A distributor understands your need to get product quickly, at the best possible price allowing your business to grow. Another key benefit is that distributors offer lower minimums on standard items, so that you can get your customer what they need without excessive costs. Add the fact that distributors have access to multiple manufacturer’s products, and it sounds like you’ve got a great supplier.

But what about custom or unique products?

This is where a manufacturer becomes priority. Many distributors cannot offer a better option when it comes to custom items. They are often forced to pass along the factory minimums the manufacturer imposes – forcing exorbitant costs on to the customer. Often these minimums can be up to 10 times the amount the customer needs for the job, substantially reducing profitability. In addition, most manufacturers require purchases to go through their distribution channel, preventing the customer from mitigating these costs through direct buys.

This is why Whitmor/Wirenetics is the best choice!

When our custom cable division merged with Wirenetics in 1986, the winning combination of both manufacturer and distributor was born.  Whitmor/Wirenetics understands the need for excellent customer service, off-the-shelf availability, great pricing and easy access to custom products with reasonable minimums.  Our industry-leading 100 ft minimum on custom cables is proof of our commitment to our customers – and the years of loyalty and continued business from our customers is proof that it matters.