What does 2009 have in store for the IT cabling industry?

Network Cabling News posed a forum question to a panel of representatives from the data cabling industry, including myself. The question was: "How has the network infrastructure industry fared during the course of the last 12 months and what have been the high and low points during this time? What will be the key factors influencing this sector during 2009 and what should it be doing to ensure its long-term growth and prosperity?"

Here's my response that was published in the December issue.
Let’s start on a high: This year’s ratification of the Cat6a / and Class EA standards, enabling 10Gigabit across copper, has been a huge step forward for our industry. The installed price of Cat6a is, however, currently more than twice that of Cat6 so, if we are to reach a wider market, the manufacturers must endeavour to bring prices down. I guess they’ll try to recoup their development costs first though.

Looking ahead, the few companies with proven quality systems and well-trained teams able to install to the demanding standards needed for Cat6a will find they can differentiate themselves from the lesser competition and win some profitable work. It’s good news for us that Cat6a needs to be installed by specialists.

The state of the economy is worsening by the hour and as I write this piece, the banks have reigned in their lending and FTSE 100 index has dropped below 4,000. The dead cat has stopped bouncing and I’d be pleasantly surprised if the index is any higher as you read this. I’m not a pessimist but, against this background, I have grave fears for our industry and those working in it.

My company’s turnover is currently 10% up on last year but, taking into account the predictions for the economy, my business plan is now based on zero growth for the next eighteen months. Customers will be making cutbacks and some companies will fold, leaving bad debts. In this climate, it’s going to require some good leadership to keep everyone employed and maintain an acceptable profit margin. I’ll be happy to stand still and maintain employment levels.

Let’s enjoy the challenge and emerge from the recession stronger and ready for the next boom.

Alan Bullen MBA RCDD
Managing Director
Lynx Networks plc