Wire Harnesses And Connector Suppliers Smiling

TORONTO, Nov. 19 -- The demand for wire harnesses will grow at the original equipment level as the number of electronic components in cars increases and become more sophisticated.

Wire harnesses are the electrical backbones of vehicles, distributing power to operate door locks, windows, mirrors, lights, seats, and other functions. The introduction of onboard computers, navigation, telematics, and infotainment systems will bolster the need for complex harnesses and smaller connectors over the forecast period.

New analysis from Frost & Sullivan (transportation.frost.com ), North American Automotive Original Equipment Wire Harness and Connector Markets, reveals that revenues for the wire harnesses markets reached $10.62 billion in 2000. Market revenues for electrical connectors, which attach harnesses to other vehicle components, reached $2.28 billion. Although the decline in vehicle production may slow revenues for a short term, the market is expected to rebound as production of new vehicles increases through 2007.

``Suppliers must evaluate the entire electronic design of vehicles and work to become systems providers,'' says Frost & Sullivan Analyst Jasmine Sachdeva. ``As automakers move toward common vehicle platforms, suppliers should look towards optimizing manufacturing efficiencies to be able to provide modules.''

The challenge for harness and connector manufacturers is to remain profitable while reducing costs. Smaller participants will be significantly affected by pricing pressures, as they struggle to maintain profit margins while competing with higher-volume, full system vendors.

Simultaneously, harness and connector manufacturers will need to develop innovative products that meet automobile manufacturers' needs in order to win contracts. A top priority for automakers is to reduce the size and weight of wire harnesses and connectors.

``Growth in flat flexible cable and flexible printed circuitboards provide opportunities for growth as automakers are continually striving for space and weight savings,'' says Sachdeva. ``Suppliers that can design and develop new technologies that allow for size, weight, and cost savings will definitely have a competitive advantage over other market participants.''

Frost & Sullivan presents the 2001 Marketing Engineering Awards to companies that have worked diligently to make a positive contribution to the original equipment wire harness and connector industry. These market-specific awards are presented to: FCI Automotive; Delphi Packard Electric Systems; Lear Corporation; Molex, Inc.; and Tyco Electronics.

The following is a list of key industry participants: AVX Corp.; Cannon ITT Industries, Inc.; CAM Industries, Inc.; Cinch North America Operations; Cole Hersee Co.; CTP Carrera, Inc.; Deca Manufacturing Co., Inc.; Delphi Automotive Systems; Empire Electronics, Inc.; Exemplar Manufacturing Co.; Framatome Connectors International SA; Ford Motor Co.; General Motors Corp.; Gettig Engineering & Manufacturing Co.; Grote & Hartmann America; Kirby Risk Service Center; Komax Corp.; Lear Corp.; Linius Technologies; Methode Electronics, Inc.; Mentor Graphics; Molex, Inc.; Multicraft International; Noma Cable Tech; Osram Slyvania Products, Inc.; Prestolite Wire Corp.; Siemens Automotive; Sumitomo Electric Wiring Systems, Inc.; Techma U.S.A./Denso Corp.; Thomas & Betts Corp.; T.M. Morris Manufacturing Co., Inc.; Tyco Electronics; Valeo; World Class Wire & Cable, Inc.; and Yazaki North America, Inc.

Frost & Sullivan is a global leader in strategic market consulting and training. This ongoing research is part of the Automotive Original Equipment Subscription, which also includes market analyses on North American Automotive Electronic Control Module Markets and North American Automotive Sensor Markets. Frost & Sullivan also offers custom consulting to a variety of national and international companies. Executive summaries and interviews are available to the press.

North American Automotive Original Equipment Wire Harness and Connector Markets Report: A070-18