Drahtwerk Wagener on the wire industry’s ongoing uncertainty

The first half of 2024 has been full of challenges for the companies active in the wire industry. Drahtwerk Wagener GmbH & Co. KG, a Germany-based company specializing in drawn steel wire production, is one of the enterprises facing the market's difficult situation.

Mr. Markus Giese, CEO of Drahtwerk Wagener, shares his insights and the company's outcomes for the first months of 2024 with Expometals.net readers.

How’s your business going so far?

This year, it seems that the “summer break” started much earlier than usual, which is quite concerning and unexpected. The most pressing issue right now is the significant drop in orders coupled with overcapacity across all sectors of the supply chain. This is quite challenging for our company.

Are there other challenges in addition to order shortages and overcapacity?

We are facing increasing competition from outside Europe, which forces us to fight harder to maintain our market share. This intensified competition adds to the already problematic environment, such as the uncertainty of political decisions in Germany and the EU and the discussions about tariffs against Chinese cars. Moreover, one can mention the ever-growing bureaucracy. This makes us act very cautiously and hinders both us and other companies from investing.

In your opinion, will the difficult situation end soon?

What worries me most is the uncertainty about when and how this situation will improve. There seems to be no clear perspective or strategy for overcoming these obstacles, and at the moment, I see no light at the end of the tunnel. This ongoing uncertainty is deeply troubling as it affects not only our immediate operation but also our long-term planning and stability.

What are your strategies to overcome these issues?

As always, we aim to do our best by organizing effectively with our suppliers, meeting order deadlines, satisfying our customers, and becoming a greener company. We have just installed a new photovoltaic plant to contribute to a more sustainable environment. I hope the market situation improves soon; if it does, we'll be ready.

The challenges for wire industry manufacturers are far from over, but Drahtwerk Wagener is not going to give up! For more information about Drahtwerk Wagener GmbH & Co. KG, please contact the company through the references provided on its online stand.