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by Timothy J. Laughlin, General Manager, Dow Wire & Cable
When evaluating the state of the global wire and cable industry, it is clear that we must become more proactive in planning for strategic long-term growth. Growth will consist of both Greenfield sites (i.e. new builds) and the replacement of infrastructure in more mature markets. A significant challenge for our industry will be the need to replace existing cables and to quantify the demand profile. Coupled with this unpredictable demand, there is the need to quantify the financial impact to both generators of electricity as well as to consumers. Understanding these emerging aspects of our business will create great opportunity and growth.
In the United States, for example, it is estimated that 30 to 50 percent of the transmission and distribution network is 40 to 50 years old, which is the approximate life span of many important system components. This provides a tremendous opportunity for diagnostic capabilities and high-capacity below-ground technology. Also, we must address the need for optimum reliability and provide better ways to address splicing and terminating underground cable in an asset-managed world.
For the most part, the utility industry is striving for maximum utilization of assets. Consider that a vast majority of utilities are now using cash flow as a leading indicator of success, thus promoting an economic foundation for the entire industry. While focus on economic metrics is indeed critical, it is well recognized that an equal focus on technical implications on the systems reinforces long-term success and sustainability. I encourage industry leaders to consider and implement total system life-cycle evaluations that will lead to longer life solutions, improved reliability, better efficiencies and long-term cost advantages.
Another part of the challenge is the fact that electricity is destined to become a larger supply source to satisfy the ever-growing energy demand as we work to address the carbon dioxide (CO2) in our atmosphere. As the world seeks a more sustainable energy future via multiple forms of power generation including both central plant as well as distributed resources, new forms of transmission and distribution will be required. Pushing more electricity through existing right-of-way corridors is the foundation for new technology that must be developed.
Planning for system-wide growth and success should encompass a minimum of four key stages:
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Implementation
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Growth
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Operation & Maintenance
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Replacement
Dow Wire & Cable is working on technology to address these stages. We access approximately a $1 billion annual corporate R&D budget at Dow and are developing products that accommodate faster processing speeds, technology that meets (and, in most cases, exceeds) government or industry regulations, improved low smoke flame retardant (FR) performance and other important innovations, to help you confront the challenges of energy sustainability.
Certainly this is a big issue that has far-reaching implications. At Dow Wire & Cable, we have more than 60 years of industry experience to match our global expertise. We have capability, desire, materials, technology and customer support that, combined with your ideas for success, will help you best meet the growing expectations of your customers. We look forward to ongoing discussions about this important topic.
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