Is the cables’ sector going to be part of all this green innovation? If yes, how cable is going to take part of this trend which is supposed to reduce the carbon dioxide emissions by 50% before 2050?

Since the sixties HYDROGEN power, has been considered of great and enormous potential, however many times it has been overcome by all energies related to carbon fossils fuels, like oil and natural gas.

Nowadays, the Earth cannot longer bear this huge burden and Hydrogen along with other well-known green energies propellers WIND and SUN, is going to play a big role.

But this propaganda in favor of Hydrogen is going to be a sound and real revolution or is also for this time sheer hype?

There is an enormous potential in north Africa as far as the combination of natural gas and solar winds farms.

North African power stations are mainly run by non-efficient plants, which can exploit only 40% of GAS power to be converted it into electricity; on the contrary European power plants are more efficient and can exploit up to 80% of gas power and eventually convert it into pure energy.

And what about the cables sectors? European governments are on the verge to invest massively on solar and wind plants in North Africa and sub-Saharan areas so that to give energy to the power African power grid. This investment will release huge amount of gas to be diverted to Europe through the actual pipeline under the Mediterranean see.

Big solar plants mean huge need of H1Z2Z2-k and eventually LiYCY cables which have to be specifically conceived to have good performances in harsh environments such as the Sahara Desert. And Hydrogen?

Hydrogen also plays a big role as the green energy expected to come out from the solar fields and wind farms is also partially diverted to run the Hydrolyzation devices and the fuel cells which transform Water and hence Hydrogen into power. Hydrogen become eventually green hydrogen which is opposed to blue hydrogen which is run by carbon fuels.

Ones more time the H1Z2Z2-k solar cables are part of the “green” system which is boosting the production of the hydrogen and fully green-based electricity without the production of C02.

If you need to know or check how a solar cable H1Z2Z2-k can be better than another one and capable to run under harsh conditions, please do not hesitate to write me here.

The post Cables along with Hydrogen Revolution or just Hype appeared first on Logicables.

Biden therefore began to reverse several steps taken by former president Donald Trump by embracing the World Health Organization, revoking the permit for the Keystone XL pipeline, and rejoining the Paris climate agreement and for sure many other steps toward these ideas will be taken.

During his campaigning period Biden stated in favor of renewable energies.

Which are the industrial sectors which are going to benefit from this change and which companies?

Will Solar sector along with its inverters, cables and solar panels pave and lead the way to a new and sound renewable revamp? Will also Europe benefit out of this? Which are the companies in our Electrical industry which allegedly will take advantage and what about our cables’ Industry?

Well, speaking about Energy and energy transportation one or the first companies which could take advantage of the drive for renewables energies in US is EATON. Although not directly involved in producing energies, Eaton in US but also other big European major suppliers of electrical components and systems will benefit somehow indirectly from the new Biden administration. In European countries such as Germany, France, Italy reported also that a big chunk of the new Corona Virus subsidies will be redirected to the development of the renewable energies.

Going down to companies, NextEra Energy is one of the most exiting companies in the list which also will benefit from this New Green Revolution.  NextEra Energy is known as one of the biggest companies managing Wind and Solar assets with 15,000 megawatts and has 140 megawatts of storage capacity.

Still regarding Solar business First Solar is also a global player and a leading manufacturer of solar power systems which can benefit from the new US democratic administration.

Going forward to investing in Solar sector If you believe in the general macro story behind solar stocks but do not want to run a specific company risk, the Invesco Solar ETF might be a good option for you. This exchange traded fund (ETF) from Invesco selects for you a vast array of companies which operate in solar sector and take the risk and the hassle to look for new companies.

To sum up Eaton, NextEra Energy, First Solar and many other companies will for sure use special cables devoted to the green energy transportation. These cables need to be qualified and durable for more than 20 years and made with high quality and durable compounds where price is no longer an issue. Among one of these cables the most used is the H1Z2Z2-K.

The H1Z2Z2-K cable is a harmonized cable which can be found easily in the market and at a first glance seems the same as it responds to specific rules, norms, and certification. Notwithstanding this, H1Z2Z2-K cables are not all the same as compounds, row materials productions technicalities can play a difference between a normal product and a higher quality one.

If you want to know about the differences which plays a big role on H1Z2Z2 you can write info@logicables.com

The post Joe Biden, the Renewable Energies and the Solar Cables appeared first on Logicables.

When we speak about the Marketing Mix we mainly speak about the 4P, but what do they refer to?

Marketing mix is an old marketing concept but still valid in our Business which is linked to the old economy and commodity.

4Ps are the initial letters of the following nouns:
• PRODUCT
• PRICE
• PLACE
• PROMOTION

If these 4Ps business aspects are well balanced, we can say that we have higher probabilities to get more success in our business.

And what about copper and cables business? Are the 4Ps valid? Or our sector is different from the others?

Let’s briefly check one by one:

Cable as Product

From the intrinsic point of view cables respond to norms and regulations, this means that we are partially “safe” with the hope that the product can absolve to its main functionalities, which are the ones of energy or data transmission.

Obviously, we cannot talk only about intrinsic functionalities but also other NON intrinsic aspects the cable should comply with to be considered a good product.

What are these aspects? Well, for sure quality at 360 degrees, but also BRAND NAME; an example? think about the ControlFlex® brand name or Ölflex® brand name which paved the way to other cables’ brands in our sector which are known as flexible and oil resistant.

But also, other aspects are important within the products’ peculiarities which can make the product GREAT!

What do you think about packaging, cable lengths and formats, typology of drums warranties and varieties of ranges such as colors etc.

Is your cable like this? Have you ever thought about this to fulfill your clients’ needs? You had better to think about it as I mention in my book a cable is not only a “price” but also made or value on top of its intrinsic functionalities.

Cable as a Price

When we deal with cable Price is not only the single issue. Obviously, it very important but is not the only aspect to be considered in our business.

More than price there is Value, and I would like to shed a light on this only by placing some questions to everybody with the idea to trigger our minds to take into consideration some other important aspects.

Is the cable the result of a well structure R&D process? Is the cable the outcome of a solid and in-depth research of new and more performing compounds? Are the compounds tested either from the producer and the company itself but also from the end clients?

If you are an electrician or a distributor? How do you select and choose the cable to be used in your tenders or projects? Are you always looking for the prices? If so, you are on the wrong side. A cheaper cable does not mean that the project overall is cheaper! Or eventually run with profitability.

I don’t want to prolong this too much but only show you that there are massive rage of parameters which should be really taken into consideration before choosing a cable only for a good price and eventually save few Euro on a project with the risk that eventually is going to fail.

Cable as Place

Well in the past I have been working for few companies as Network Development Manager, and for sure this aspect and the enlargment of the sales network was for me, as it is now, the quintessence of the sales distribution.

We cannot produce cables, or if you are a cable distributor, distribute them with the idea to sell them locally and eventually on the spot abroad.

A well-structured and well serviced network need to be properly and strategically developed even in our cables’ sector such as in all other sectors.

At the time I am writing there are companies in Europe which distribute cables within one hour from the order (placed with an APP on a cellular phone), and directly to the building yard. Don’t you think that this is not a part of a well-structured distribution and sales network service?

Establish as solid and sound distribution channel is also important as it reduces the entrepreneurial risk and give stability to your sales. In the past I met producers, distributors and occasional sellers which really sell cables just for the sake of selling without even respecting the way a network is structured and with this I mean selling directly to end clients with no respect. This is not the way a structured sales network is working. In other terms supports your sales network to sell cables (SELL-OUT) and do not consider it as a SELL-IT only network or it will never support your business.

Cable as Promotion

Finally, there is a common way of thinking in our cables’ sector with which many players think about marketing activities like Promotions, Publicity, PR activities and even Web marketing, and also Customer Relation Management; they really think that these marketing aspects are not important as the cable as product is part of the old economy and in the old economy such marketing activities are not working.

Nothing is more wrong than this! and a matter of fact we can see every day that big cables producers and the worldwide cables distributors are constantly and intensively investing in new way of promotions like social networks etc. These players know the new marketing parameters like how much it costs getting new leads, new clients, and the way how to use them even if they are part of the old economy.

Even if you are a small electrician developer distributors or cable producer never stop doing promotions and if you did not start yet, follow my suggestion, start now or you really run the risk of being out of your business very soon.

If you want to know more about my book you can check it here

The post Cables Marketing Mix…are the 4Ps still valid? appeared first on Logicables.

Just a short thought and few words to wish you and all colleagues and families a year full of serenity and joy and above all full of good health.

This year has been a very peculiar one not only from a business point of view but also from a social and health view due to the enormous impact that COVID-19 have had in our lives.

As owner of this blog Logicables.com and developer of the project “Value in Cable Business!” I decided to support again the foundation Hospital Meyer from Florence Italy which faced also few covid-19 cases within their premises and their little patients.

The Meyer Hospital is a beacon of national paediatrics in terms of its innovative research, its innovative treatment methods, and the way it cares for children.

Children need your small support!

Please donate now directly to buying my book on: https://valueincablebusiness.com/

Or directly* to: http://www.fondazionemeyer.it/dona-ora/ 

* IMPORTANT: In order to match the donation with the event code please reply to the confirmation email you receive by sending the code 3032-1103. Should you donate with bank transfer please write the code 3032-1103 on the bank transfer.

The little ones need your support.

Thanks,

Gianluca

The post Cables for Christmas Charity… appeared first on Logicables.

Most of the times I do not like to speak about the global economy and these unknown parameters, but at the end of this year 2020 I cannot refrain from saying what is happening on COPPER PRICE levels due to COVID and more.

Late in March the first lockdown came globally out of the blue and almost at the same time.

All global economies stopped and consequently all of us decided to stop or slow down with our purchases, either private and company ones like investments or setting up new projects. Consequently, consumption rate decreased, and private and company savings increased. All of this compressed somehow the financial economy for a new escalation which is now happening.

Regardless of this, since May this year the global economies commenced to recover what had been lost from February to April 2020, ending up in September (at least from the financial point of view) where we were back in January 2020 with new Heights???

Covid death rate is now sadly a new economy parameter such as country GDP or US no farm payroll, unemployment rate announcements and so on and so forth. As a matter of fact, the better is this rate doing (obviously by going down) the better the financial economy running; even if this does not mean that the real economy is effectively improving.

I don’t want to prolong it that much but if you are a businessman or businesswoman, I suggest you to keep constant view on the following big C and check what is the impact on your company and industry. I shortlist for you the BIG 4 Cs.

First “C” as COVID: such strong disease is mixing the economy expectations leveraging them to new unknown parameters and relations which create much more volatility, at least at the beginning of the pandemic period.  In other terms every economy player like governmental institutions or other actors, is first checking what is happening on Covid before taking some decisions. Economy is compressed and people stay at the “Window”.

Second “C” as CURRENCIES: like USD/CNH where the Chinese Yuan is reaching the highest levels against US dollar since years, having as consequence that for China industry copper became much cheaper to acquire since it is quoted in US dollar. As a consequence, the initially economic copper was bought flamboyant increasing their storage capacity as they know that the economy downturn would have been at least milder as they initially thought.   Also, USD/EUR at the time of writing is reaching 1,21 and as the economy is in USD also for Europe, just making sheer projects of buy the raw materials is becoming more economic.

Third “C” as CHINA: this country is playing a big role either on Covid, (as it has been accused to spread the virus globally, but also probably or allegedly among the first to escape from it as today their ranking is 72  https://www.worldometers.info/coronavirus/#countries) and also on its massive capacity to acquire copper ores and cathodes as they are the biggest consumers.

Fourth “C” as COPPER, as far as our industry is concerned, copper responded both ways, the first one as sheer commodity, so where and when inflation rate is foreseen to increase, the economy prices are expected to rise and as a consequence commodities are increasing their numbers. So did the “RED GOLD” that since March 2020 increased almost 70%. The second way is simple, as it is just the reason of additional speculation for financial institutions and speculators. To validate this “theory” and just for your info normally speaking toward the end of the year copper prices are expected to reduce due to lower seasonality, however and on the contrary this year the vast majority of commodities such as Soybeans, Wheat etc. and also non-ferrous metals (Palladium, Zinc, Aluminum) increased their levels and peaked new heights as speculators gain more and can drive up the prices to the highest level of uncertainty and expectations.

The post The Big 4C (Covid, Currencies, Copper and China) why Copper is so high! appeared first on Logicables.

Conversely very few people know another so called TESLA, who is probably one of the most important relevant scientists of the last century.

I am talking about Mr. Nikola Tesla, a Serbian origin scientist to whom all of us should be devoted for his inventions and studies. During his carrier Mr. Tesla registered more than 250 patents and most of them registered within the energy and hence the cables sector.

If nowadays energy can be carried for long distances and run alternating and induction motors, we all have to be thankful to TESLA and his studies on alternating energy.

If nowadays we all ask about screened cables is because Mr. Tesla made his studies on electromagnetism produced by an alternating energy running through a copper cable.

If nowadays we all ask about screened cables is because Mr. Tesla made his studies also on frequency waves.

If nowadays we all ask about screened cables for motors is because Mr. Tesla made his studies in induction rotating electric motors and generators.

If nowadays we all ask about screened cables for VFD (Variable Frequency Drive) motors is because Mr. Tesla discovered the rotating magnetic field.

In other words, when nowadays a client, distributor or industry asks for screened cables offer always the best ones as far as the quality and the highest percentage of braided coverage is concerned. All of this is because an innumerable level of parameters you might not be aware of may have a relevant impact in the functionalities of the cables itself and let the project to collapse because we made the client save  a bunch of eurocents in favor of a less known and more economic cable.

If you want to know a bit more about VFD motors click here: https://en.wikipedia.org/wiki/Variable-frequency_drive

If you want to know a bit more about Tesla alternating current click here: https://en.wikipedia.org/wiki/Alternating_current

If you want to know a bit more about Tesla as scientist click here: https://en.wikipedia.org/wiki/Nikola_Tesla

(*out of curiosity) Mr. Nikola Tesla made even new studies on signaling Mars when he moved to Colorado Springs and in the near future Mr. Tesla the other one (Elon Mask) will take the humankind to Mars during the next decennial.

The post Mr. Tesla Vs. TESLA (… and the screened cables) appeared first on Logicables.

As owner of this blog logicables.com and developer of the project “Value in Cable Business!” I decided to support a foundation Ospedale Meyer from Florence (Italy) which faced also few covid-19 cases within their premises and their little patients.

Sometimes we have to STOP…

Please donate now by buying my book here: https://valueincablebusiness.com/

Or donate directly to: http://www.fondazionemeyer.it/dona-ora/

The little ones need your support.

Thanks,

Gianluca

The post Cables for Charity… Sometimes we have to STOP! appeared first on Logicables.

And what about the differentiation in cables sector?

Cables are mainly made by copper and compounds which are commodities and being low added value products, we need to differentiate them as much as possible.

Are you a PRODUCER? Or a DISTRIBUTOR? are you a BROKER? or eventually an AGENT? or whoever you are trough the supply chain and till the end consumer cables need to be differentiated.

We can talk about intrinsic or extrinsic differentiation, with the intrinsic differentiation relates to the cables themselves and extrinsic to other proxy surrounding the cable like SERVICE, AVAILABILITY, DELIVERY and PRODUCTION Priorities.

and eventually… how can we differentiate?

Pretty simple you have to create a Product out of a commodity by adding SERVICES and therefore VALUE.

It is a like FLIGHTS (Ryanair) and Emirates. Both companies are profitable, but their business model is definitely different. One tries with success to achieve the PRICE leadership (no services and for additional services you have to pay) and the second one is differentiation by adding BUSINESS CLASSES SERVICES, TOP PREMIUM Services (priorities services) either on the aircrafts and on the ground.

The post Differentiation… in cables business! appeared first on Logicables.

If my conversations with customers were to end like this, I would definitely not get more customers or worse still I would never have had any.

This is particularly so if a large part of the value of the products is linked to commodities in the strictest sense such as oil, copper, gold, or foodstuffs.

So how can we solve the problem or at least make the customer understand that our product, albeit very close to be a commodity, is in some way different?

Well! You need to differentiate the product itself, by adding services and thus adding value, making it unique by making it available in an exclusive way or by making it part of an exclusive niche.

Let me give you an example which you can find here.

I have a friend who for a long time has been working in the distribution of varnishes and paints for residential use and specifically anti-mold paints!

Who are his competitors? Why the big malls that buy big quantities at really low prices and that can compete with all the small shops that sell paints locally. What are paints if not commodities, or something very similar?

Giuseppe, which is his name, created a new brand, his exclusive brand, with his own brand name, “Basta Muffa” or “No more Mould”, using special branding that he created and designed himself, a brand that competes on an equal footing, and is winning, against the great giants of organized distribution.

It’s a bit like if we were to create our “NO MORE LEADS!” and sell them through other channels, our channels, in competition with the giants who produce and sell these leads below cost.

But how do we add value or service to a product like ours? There are many ways of differentiating and branding, and for this reason, I recommend that you read a book that is now a classic of marketing, ‘Competitive Advantage’ by Michael Porter in which he discusses the value chain. As you read it, at least as a manual because there are more than 500 pages, you’ll see that there are two approaches you can take with your business, price leadership or differentiation.

Price leadership! I strongly advise you against this unless you are a giant like Amazon or an Asian producer; Amazon for example, in addition to low prices and therefore cost leadership, has added countless services, even inventing years ago a new way of creating value, Amazon PRIME, and by adding to it a host of other services. (hence leadership + differentiation).

If you take this route, however, I recommend that you pay close attention to your numbers because if you do not carry it out in a scientific way it creates a Kreislauf that will soon lead you to trivialization and “re-commodification” and finally bankruptcy.

Differentiation, on the other hand, is the way you have to go in your sector and in our sector, that of industrial cable production, it is an absolute MUST. Differentiation can take place in a variety of ways, over time, in space, in value, through the addition of priority and exclusive services, by participating in training seminars, bundling deals, etc. those other competitors do not even dream of developing and bringing to fruition.

But we will talk about differentiation in future articles because this is the only way to survive in our industry.

The post Price leadership… no thanks appeared first on Logicables.

I am currently reprinting the book as after 2 months of personal more than 100 copies have been distributed and sold.

I have now decided to you deliver it personally and not buy way of Amazon as with this book I support a charity association and I want to devolve as much as I can to this foundation.

Should you need to order this book you can write me here: info@valueincablebusiness.com and I will give you all details.

For further information, visit the website: www.valueincablebusiness.com

Gianluca

The post I am sold out “Value in cable business” is now a success! But Amazon is not for me appeared first on Logicables.