North American Overhead Electrical Transmission and Distribution Structure Markets

Abstract

Overhead Electrical Transmission and Distribution Structure to Adopt More of Steel Poles than Wood Poles due to Ease of Availability

The rising trend of steel poles replacing wood poles is primarily due to the huge differences between the resources the steel industry has committed in promoting steel for poles as compared to the resources the wood industry has put through to the challenge. The steel industry in North America is well organized with the American Iron and Steel Institute (AISI) gathering resources of member companies to launch aggressive marketing campaigns to promote steel in the pole industry. Thus, wood poles are being substituted with steel poles not only in transmission applications where steel has proved to be stronger and longer lasting but also in distribution applications, where wood poles traditionally had critical competitive advantages.

This Frost & Sullivan research service examines the North American overhead electrical transmission and distribution structure markets. It provides detailed insights into recent developments and trends. The study also discusses the prevailing market drivers and industry challenges and gives an overview of the market revenues and shares.

Stronger Marketing Initiatives by Wood Industry Could Boost Wood Industry's Revenues

With effective marketing strategies, the wood industry could promote its product benefits of ease of modification, climb ability, and cost. However, its lack of such initiatives is likely to give the steel industry a competitive edge.

"Countering the steel industry's moves with effective marketing campaigns of its own should enable the wood utility pole industry to protect its market share," says the analyst of this research service. "Leadership is needed to unite the industry and marshal the available resources to launch a major counterattack against steel pole makers."

Replacement and Maintenance of Poles to Sustain Market Growth

"The massive August 2003 blackout had prompted plans to carry out overdue maintenance, upgrade, and new line projects, with an emphasis on maintenance and upgrades," says the analyst. "States mandated expedited and enhanced maintenance, and ground line inspection of poles revealing reject poles that needed replacing. In addition, larger transmission projects addressing bottlenecks along interregional routes are to be commenced."