Market Commentary by: AWIA – Australasian Wire Industry Association
The Australasian steel wire industry is underpinned by the construction, agricultural and mining industries. Through the peak of the Covid-19 pandemic, governments throughout Australia significantly boosted spending on infrastructure projects which had a flow on effect for all companies involved in the construction sector. Increased mining volumes and a buoyant agricultural sector also helped companies manufacturing and importing wire products. Forecasts of diminishing revenues in the wire products sector of 0.9% annually consequently failed to eventuate. Instead, what occurred was an increase in industry revenues of around 36% over the past six years to $1.5 billion for 2023*. During the same period, there has been a contraction in the number of industry entities by around 19% with a rationalisation of the sector assisting remaining entities to maintain their viability. Industry profit margins have risen from $53.5 million in 2017 to $112.5 million in 2023. This came with an increase of 7.5% of revenue after a period of significantly reduced margins industry wide.
Forecasts are for total wire products industry revenues within Australasia to remain relatively flat as economies worldwide face higher interest rates and significant cost of living increases. Imports and other product substitution are also expected to impact on local manufacturers who face increased energy costs and low levels of trades qualified employees. These conditions are likely to lead to further rationalisation of manufacturing enterprises as has consistently occurred since the closure in 2017 of the local automotive manufacturing sector.
The Australasian Wire Industry Association (AWIA) was originally formed in 1965 as the Spring Makers Association. But it now acts as the peak body representing companies involved with the production, transformation and use of steel wire in all its forms throughout Australia and New Zealand. In conjunction with Australian Standards, the Association also advises and sits on technical committees for the development of appropriate manufacturing standards. The AWIA is a not-for-profit organisation and regularly holds conferences and plant tours for members to broaden their horizons and to enable them to network with each other. The AWIA website is: www.wireassociation.org.au
(* Statistics provided by IBISWorld Industry Report C2291 Spring and Wire Product Manufacturing in Australia – 2017 and 2023).
Founded in 2008, Ariston Wire embarked on a mission to supply high-quality wire products to various industries across Australia. Initially specializing in black annealed tie wire for the reinforcing and galvanizing sectors, we quickly earned a reputation for delivering wire of unparalleled quality – the perfect balance of strength and malleability for hand-tying applications. As demand grew, we expanded our offeringsto include galvanized wire, catering to the manufacturing, rural and fencing industries. From these modest beginnings, Ariston Wire, headquartered in Sydney, has established stock and distribution facilities nationwide, proudly serving an extensive range of industry sectors. Our evolution into a premier importer and distributor of wire, steel and building-related products is a testament to our dedication to excellence – one customer at a time.
Our top-selling products reflect our commitment to meeting diverse industry needs: galvanized steel dowel bar; builder´s film; deformed bar; reinforcing mesh; galvanised steel sections; tie wire in coil and cut length; galvanized wire; general purpose mesh; sheepyard mesh; cattle panels; star pickets. At Ariston Wire, we offer: uncompromising quality; flexible order quantities from one tonne to full container loads; efficient storage and just-in-time availability; professional inventory management; decades of industry experience; and warm and knowledgeable customer support. Moreover, we offer comprehensive customization options for products, packaging and branding. We recognize that every customer is unique.
The name “Ariston” finds its roots in Greek, meaning “The Best” – a lineage shared with the term “Aristocracy”. This linguistic heritage underscores our unwavering commitment to delivering nothing short of excellence. For truly Ariston service, please call our head office on +61 2 93874188, or email [email protected] or visit our website www.aristonwire.com.au
From the bush to the city, Vater Hardware brands Elgate & Eltrak have been Australia’s most trusted brands in the fencing and sliding door industries for many years. Since 1960, this family-owned and operated Australian company has manufactured quality products using Australian steel in our Australian factory located in Adelaide, South Australia. Vater Hardware prides itself in the wealth of experience of its people. Manufacturing knowledge is now being passed down from our older generation to our next generation with our mentorship program. Too often valuable skills are lost when older employees retire. By connecting the younger generation with the skill sets of our older employees who range in ages from 55 – 77, Vater Hardware will make sure the road never ends for the manufacturing of Australian products with Australian steel in Australia.
Australian Steel & Wire (ASW) is an ISO 9001/2015 certified entity which has been serving the mining, industrial and construction sectors within Australia for more than a decade. We fabricate welded mesh in strict adherence to Australian standards, boasting a tradition of delivering premium quality products alongside excellent service. Our inventory encompasses a broad spectrum of welded mesh varying in wire diameters, coatings, apertures and sheet dimensions. Additionally, we offer innovative wire products tailored to meet the distinct needs of both the mining and industrial wire markets. Moreover, we maintain extensive stocks of galvanised, ribbed and bright wire in both coils and straight lengths. Contact ASW by phone on (+61) 8 94393778 or visit our website: www.aswonline.com.au
Sanwa has been supplying the Australian market with a wide range of galvanised, black wires in high tensile, medium tensile and low tensile for more than 30 years. We have supplied wire in belt packs of 1.5kg right up to compact coils weighing three tonnes each. Product can be supplied plain, indented or ribbed, depending on the product and the customer’s requirements. Sanwa can supply product into the manufacturing or construction industries and can give you advice once we know more about what you are looking for. We have worked with suppliers from South America, South Africa, Europe and many countries in Asia – backing the quality of supply from tested sources with the security that it is possible to import product and pay for it after it has been used. Being able to rely on a local and trusted company to take the risk of receiving non-conforming product after having paid for it is a substantial “value add” which Sanwa offers to the Australian and New Zealand market. If you are simply looking to test the import market and want to see what options are available, please contact either Liubov Morozova-Sogrine or David Roberts. Phone: (02) 93624088.