Wire & Cable Technology International - January/February 2008 - (Page 6)

EDITORIAL At the end of 2007, Berkshire Hathaway Inc., led by investment superstar Warren Buffett, announced its intention to buy 60% of the Marmon Group for US$4.5 billion. It also said it intends to acquire the rest of Marmon over the next five or six years. The Marmon Group is an international association of more than 125 business units that operate independently within different industry sectors including electrical and electronic wire and cable products. Marmon’s wire and cable companies have a combined annual sales of over US$1 billion, and they cumulatively employ around 2300 people in North America and the UK. The companies are listed as follows: • Aetna Insulated Wire • Cable USA Inc. • Cerro Wire & Cable Co., Inc. • Comtran Corporation • Dekoron Wire and Cable • Dekoron/Unitherm • General Cable Industries Limited • Harbour Industries, Inc. • Hendrix Wire & Cable, Inc. • The Kerite Company • Owl Wire and Cable, Inc. • Rockbestos-Surprenant Cable Corp. • PMC, a Division of R-SCC I admire the Marmon straightforward way of acquiring and managing companies, and even though Warren Buffett’s recent ramblings with Hillary Clinton about income redistribution and estate tax rates are foolish and troubling, one can’t help but be impressed by the investment track record of Berkshire Hathaway and its traditional investements and subsidiaries. On paper this looks like a great fit, and I think it is a strong endorsement of production-related companies, primarily based in the USA. Buffett called the deal a “very large bet on America over a long period of time,” and he expects Berkshire to help Marmon to grow. Marmon does not have any glamorous, new economy holdings or any rock-star CEOs like Steve Jobs, but it is filled with solid companies that make and supply regular products, including wire and cable, at a profit. An Attractive Investment Will this be the year that India takes over China’s position as the “manufacturing growth darling” of the world? It could be as China is dealing with many hurdles, including a boat load of product recalls in 2007, a wave of rising costs (fuel, materials, labor, shipping, etc.), relaxed export tax rebates, rampant product piracy, new anti-dumping charges, preparation for the Olympics and increased international pressure to increase quality inspection procedures, worker benefits and pollution controls. Over in India, recent news is more positive and less aggressive: • Several auto makers have announced production expansions in India. • Ford Motor selected India’s Tata Motors as the front-runner to buy its Jaguar and Land Rover product lines. • The Tata NANO was introduced in India as the world’s cheapest car with a price tag of US$2500. • Exports of automotive components are growing around 30% per year, according to data released from Indian manufacturers. • Sterlite Industries, is one of the country’s 50 fastest growing companies, and several cable JVs have been formed. I think China will slow down (slightly) under the mounting pressure, and India’s position on the world manufacturing stage will continue to improve. India’s Turn? Power to the People Freedonia Group reports that the world’s appetite for electrical power equipment is expected to rise 4.4% per year through 2011, at which time China will be consuming 25% of the world market. The largest markets will remain Asia/Pacific and North America, and robust growth is expected in India and China. Power cable suppliers should be positioned to enjoy this trend. Michael J. McNulty, Editor mcnulty@wiretech.com Fiber optic cable manufacturing Exacting Quality high-speed solutions for dry loose tube production with low EFL. The ideal response for meeting FTTx requirements. Serving the wire & cable and tube & pipe industries from locations in the USA, Switzerland, Finland, Russia and China. Exceeding Excellent Exceptional Experienced Extrusion 10 D 21 Deﬁning Extrusion 6 Wire & Cable Technology International/January 2008 www.mailleferextrusion.com http://www.mailleferextrusion.com http://www.mailleferextrusion.com

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Wire & Cable Technology International - January/February 2008 Editorial Wire & Cable Events Industry News Global Economy Drives Specialty Cable Demand Corporate News Change is Tough! Top Products of 2007 New Magnesium Hydroxides Enabling Low-Smoke Cable Compounds Straight From the Show - IWCS Conference™ A History of Long-Term Thinking Ensures a Pioneering Spirit Expediency of Roller Dies Application in Wire Drawing - Part 1 WireDrawing 101 Strain Rate Transforming Our Ideas Into Your Success Straight From The Show - Wire Southeast ASIA 2007 Capstans, Dancers, Accumulators Roundup Spotlight On Quality Control Pioneering Virtual Technology for Extrusion Electrically Heated Furnace Cuts Energy Costs/Reduces Carbon Footprint Machinery Accessories Materials Polymer Developments in the Cables Industry Wire & Connector Top Products of 2007 Just Load, Click and Print Superior Flame Resistance for Minimal Smoke, CO & Acid Gas High-Flex Round Cable Added to On-Line Design Tools Failed Bridge Cables Replaced With Smaller, Stronger Ones Advertisers Index Classified Advertising Internet Spotlight Editorial Index

Wire & Cable Technology International - January/February 2008

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