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2022
INDUSTRY OUTLOOK Report to Members 2022 Officers
O F F I C I A L P U B L I C AT I O N O F T H E W I R E A S S O C I AT I O N I N T E R N AT I O N A L
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2022 outlooks This feature presents comments from a dozen manufacturers on handling Covid-19, and expectations and concerns for 2022. It also includes a look at industry employment, an ongoing cable conductor contest and Prysmian’s role in it, a historical look at copper prices, a CRU market outlook and an update on a company’s vaccine mandate.
Looking back and forward: manufacturer outlooks WJI asked a range of wire and cable manufacturers for their thoughts about 2021 and their expectations for 2022. The following are their collected responses.
WJI: At this point, do you feel optimistic about 2022? Has your company achieved a sense of normalcy? Are there some elements (travel, in-plant staffing, etc.) that may never be quite the same again? We’re fairly optimistic, and we have achieved some normalcy. Things are not the same as they were pre-pandemic. Nor should they be, because while the pandemic has been a huge disruptor, it has also been the cause for positive change. Many of our employees have a greater degree of flexibility when it comes to when and where they work. We have created deeper personal connections with distant customers because video calls are now the norm, allowing us to see each other more frequently than in the past. We have become more deliberate at staying connected to our teams. Our business is strong. Of course, we realize that the world is still in a perilous state. But we have shown that we have the right people, resources and attitude to overcome adversity and emerge stronger. Helge Hinniger, corporate communications manager, Fort Wayne Metals. We’ve effectively managed the challenges of the Covid19 pandemic and natural disasters that occurred through 2021. We have made our organization even stronger to keep making a difference for our customers and communities and remain very optimistic about 2022 (and beyond) that we’ll continue to do an even better job. Regarding the Covid-19 pandemic and restrictions, we remain proactive in our health and safety protocols by adhering to all CDC and OSHA guidelines and have worked on a hybrid return
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to office plan. Prysmian Group’s focus for 2022 is to stay at the forefront of the world’s transition from fossil fuels and fight the effects of climate change that keep challenging our communities. Our momentum has accelerated with recent plant investments and project wins, including $185 Pirondini million in investments in key North American plants, as well as announcing three major transformative projects, including securing the largest ever submarine cable contract in the U.S. from Dominion Energy. We are continuing to grow our cable system portfolio in North America and have become a strategic partner of choice for building the U.S. clean energy grid. Andrea Pirondini, CEO, Prysmian Group North America. 2021 has brought record demand across our businesses. Almost every industry that experienced slowdowns and shutdowns in 2020 have come back strong. The only industry that was slow to come back seems to be oil and gas, but our 4th quarter demand shows even that industry has rebounded. The continued strength through 2021 has us W W W. W I R E N E T. O R G
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very optimistic that 2022 will be a strong year. We have made significant investments in capacity that are just now coming on-line and should allow us to take advantage of the increased demand next year. We are looking forward to a bright 2022. Ted Bill, CEO, Wire Experts Group. I would say we have “guarded hopefulness.” There are many conditions that exist globally which can quickly change a company direction without warning. We can
thank the global pandemic for that change in approach. This is the “new normalcy” that we have reached, not necessarily achieved. The planning process is much more focused on positioning the company to deal with these threats. Eventually some issues will work themselves out, such as staffing and shipping, but other things, like commodity prices and costs for power, may be different moving forward. You have to prepare for those inevitabilities now. Paul From, president, Central Wire Group.
Employment: hiring market tight and likely will get more so Hiring remains a key issue for industry as a whole. WJI asked Peter Carino, a long-time headhunter and the principal of Wire Resources, to share his thoughts on the field. He can be contacted at pcarino@wireresources.com or at tel. 203-622-3000. WJI: In terms of industry employment and recruiting, how have the Covid-19 years been? Carino: There has never been anything like the period when Covid19 first struck. Initially, hiring came to a grinding halt. Business and our everyday lives shifted to a virtual mode. Product demand was largely still there, and so was the need to secure talent. The hiring process just adapted. Phone and video calls that were previously the initial screening step became the entire process. Some hires were all virtual. I know of one new hire who worked remotely, and did not meet the boss or coworkers for weeks after the start date. That was unprecedented. WJI: Are people less interested in work and/or in moving for a new job? Carino: The positions I recruit for do not go unfilled because candidates don’t want to work or are afraid to work in a Covid environment. However, there were/are some very real challenges in hiring management and senior executives. Some parents with children being educated at home did not want to add a physical move to that dynamic. Also, a move to a higher housing cost area is a deterrent. WJI: What stands out most? Carino: In my 38 years serving the cable industry, I have never seen such across-the-board pressure on
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Carino wages, both salary and hourly. The years prior to and following the dot com bust and the 2008 financial crisis were robust, but salary was not affected like it is today. My clients say that higher hourly factory wages have been the biggest challenge. Increasing pay for machine operators is hard when other industries—such as Amazon—have poached plant talent with higher starting wages for people with little or no experience. The search for industry management is compounded by how many older people occupy those positions. It’s not a new story, but it is one that continues to become more of a problem. All the small- to mid-size cable producers I talk to bring this up. WJI: How do you see the dynamic of working virtually? Can that fit in “the new normal” at some point? Carino: Yes and no. The pandemic has built the case for the ability and efficiency of working remotely, so I believe it will have a lasting effect as we get to a post-pandemic business environment. At the same time,
there is a pent-up demand for faceto-face meetings. This is especially true among sales people for companies that manufacture either an engineered or niche product. Companies also tend to do business with people they like and trust. I’m not saying that’s always true, but there is value in a relationship that has a history of personal interaction. The industry may have to learn to live with a combination of the two. WJI: What’s your expectation for the next few years? Carino: The hiring market is tight. The companies most likely to make good hires are those that are realistic and competitive in their wants and expectations. In my experience, a company must interview and hire knowing that it is a two-way street. What does the potential candidate have to offer and what do we have to offer them? They must be candid with respect to what their company does well and not so well. I know this sounds “101,” but it’s not what always happens. The desire and need to hire people with wire and cable expertise has not changed, especially for small- to medium-size cable producers. The pandemic put off a number of planned retirements in the past two years. As those people now start to retire, coupled with the planned retirements in 2022, 2023 and beyond, will make cable-experienced hires even more difficult.
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