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At this 500th Issue Milestone we tackle a big question: Is APC in the buggy whip business? This classic business school analogy relates to the hundreds of buggy whip manufacturers who ignored or fought the advent of the automobile ~100 years ago. In case you missed that class, those who failed to specialize or diversify went out of business. We now ask because the advent of friction-enhanced "no-lube" cables brings out a bit of the Chicken Little in us all. Are cable lubes modern buggy whips? The quick answer is "No," but let us delve deeper. News of our demise has been greatly exaggerated before. First, the wireless revolution was going to put us under. Then came prelubricated conduit to finish us off again. Another threat was cable blowing, which we converted to an opportunity by becoming the world's dominate producer of blowing/jetting lubes. Now SIMpull™ and imitations are here to presumably drive the final nail in the coffin. Yet our sales continue to rise even in a slow economy. What's going on? Several things: One is specialization. Ironically, some of APC's best allies are the cable manufacturers conspiring to obsolete lubes. While they're introducing friction-enhanced cables, they're also turning out other specialty cables based on diverse technologies (such as LSZH, Cat 6, semi-con, fire-retardant, and other hybrids) that aren't slippery and often have very specific friction-reduction needs for installation. The future of cable lubrication is specialization. Cable compatibility and unique application needs force targeted, specially formulated products and specification. This drives distributors crazy because inventory is a problem; not just any old product on the shelf will do. None of this is a problem for you. Why? Because APC is the only lubricant manufacturer that specializes, the only one in the world that engineers lubricants for specific performance criteria. APC already produces ~30 separate cable lube formulas, with more to come. APC is superbly positioned to benefit from such a market. It is the competition--who do not specialize; who do not offer variety; and who do not understand the complexities and chemistry of cable lubrication--who are at risk. Another reason is diversification. The buggy whip makers who survived were those who saw the march of technology for what it always is--inevitable--and embraced the automobile. They diversified their product line to make leather driving goggles, gloves, leggings, steering wheel covers, etc. The change was abrupt, but the prescient flourished. APC began diversifying many years ago. A list of products includes cable cleaners, rubber goods cleaners, general degreasers, live-line tool treatments, MRO aerosols, foam sealants, conduit adhesives, transformer repair kits, and many other types of lubricants, sealants and adhesives. You should, in fact, analyze your Polywater sales; if sales of cable lubes represent more than 50% of the total, you're not getting your fair share of our diversified product line potential! To be continued ... |
