Andrew Shaw is MD of cable-maker Ducab.
Stabilisation
“We are now beginning to see some stabilisation. Customers now have a much better idea of what projects are carrying on, and which ones have been suspended or cancelled. I think it has been particularly difficult for our customers, particularly in real estate, as they have not known which projects would continue, and where to place their resources. Now they are beginning to comprehend what sort of workload they have left, so the sense of uncertainty is beginning to lift. This means they are now able to devote their full attention to those projects that are going full steam ahead,” says Shaw.
This has presented Ducab with several opportunities in an otherwise lackluster market at present. “We now have more capacity to be able to push product into the region. There is now almost a breathing space for us to focus on internal processes and efficiencies, which we have not had the chance to focus on until now. There is now also more line time available for R&D into new products,” says Shaw.
These new opportunities also present their own unique challenges. “The prevailing level of uncertainty means we have had to come up with much shorter lead times. When customers need product in this market, they need it quickly, because no one wants their cash tied up. We remain confident that we can respond to these new challenges,” asserts Shaw. Another challenge is increased competition.
Synchronised
“As the whole economic crash has been so synchronised almost across the entire world, cable makers in Europe, Asia and India are now faced with local markets that are much less buoyant they were before. Relative to those home markets, the Middle East is still a growth market, meaning there is now a lot more competitor interest in the GCC. There are a lot more imports, and a lot more people wanting to bring cable in,” explains Shaw.
This raises the spectre of sub-quality products entering the region. “It is not surprising that, with the prevailing economic situation, there is now renewed pressure on costs. The spectre of even fake-quality product has always been there – in the peak, it was due to a shortage of supply, and now with the relative downturn, it is due to the perceived need to cut costs,” comments Shaw. There is equal pressure on consultants and specifiers, he adds, who need to maintain the correct specifications so as to ensure proper healthy and safety standards across the board.
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“For example, the Dubai Metro stations are using a lot of fire-resistant cable. Yes, it is more expensive, but it is about safety. A lot of high-rise buildings have also been moving to low smoke and fume cables, which increases the survivability factor in case of a fire, as the smoke is less dense and poisonous. There could be a temptation to move away from those cables. Electrically it is still fine, but it does not give the same safety factor. I think this is an area where we will have to work quite hard with specifiers to ensure that safety-critical aspects are not compromised due to the intense pressure on costs,” argues Shaw.
Looking to the immediate future, Shaw says Ducab has been at pains to position itself as a total solutions provider. “We pride ourselves on being able to do everything, from assisting with system design for customers who want advice on what cable sizes and accessories to use, to how to install it. We are involved with projects right from the very beginning, when they are still on paper, all the way through to jointer training. In this sort of market, where everyone is feeling the pressure, we believe that being able to turn to a trusted, one-stop provider is something the market values,” concludes Shaw.
Al Raha
Ducab has signed a Strategic Manufacturer Agreement (SMA) to supply LV wires and power cables for the Al Raha Beach project. As per the agreement, estimated at about AED800 million worth of cables, Ducab will supply developer Alor with LV wires and power cables valued at AED100 million a year.
Al Raha comprises 11 precincts, and will require nearly 70 km of 22 kV cables. Covering over 570 hectares of land, this mixed-use development will be the new gateway to Abu Dhabi. Completion is scheduled for 2015.
The project includes an 11-km-long coastline development that will house iconic buildings such as the Abu Dhabi World Trade Centre, Aldar’s new headquarters, luxury waterfront villas and hotel and apartment properties.
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