Encore Wire

Unit 3: Describe a Company

Encore Wire Corporation

Student Name

LTEC 4040.020

Professor Rouh

DateUnit 3, Describe a Company: Encore Wire

Encore Wire Corporation is Delaware corporation, with primary operations based in McKinney, Texas. Encore Wire is a low-cost manufacturer of copper electrical wire and cable for use in buildings. Encore’s major customers are wholesale electrical distributors who supply builders and electrical contractors (Encore, 2010). Wire and cable produced by Encore Wire Corporation provide interior electrical wiring found in various commercial and residential applications, including:

 Single family dwellings

 Manufactured housing units

 Apartment complexes

 Commercial buildings

 Industrial buildings

Founded in 1989, Encore Wire Corporation has been publicly traded since an Initial Public Offering in 1992; their NASDAQ ticker symbol is “WIRE” (Encore, 2008). From the beginning, all manufacturing, distribution, and executive operations are conducted at the McKinney location, which currently encompasses 191 acres with over 1.4 million square feet of building space (Encore, 2009). Encore Wire credits its single location strategy as key to its success. In a 2009 presentation for Investors, Encore labels the McKinney location key to the “vertical integration” approach that keeps costs of production low and product quality high (Encore, 2009). Encore management is enthusiastic about this single point of production model. In an interview with Recycling Today reporter Brian Taylor, Encore Vice President Frank Bilban labeled the McKinney facility a “huge benefit and a reason for our success” (Taylor, 2007).

Through repeated expansions at the single site, Encore has been able to bring most production needs in-house, which reduces costs and delays associated with outside supply chains. This vertical integration strategy has helped Encore Wire quickly become competitive in an industry once dominated by companies with over 50 years experience each. Encore’s major competitors are:

 Southwire Company, of Carrollton, Georgia

 Cerro Wire LLC, of Hartselle, Alabama.

 AFC Cable Systems, Inc., of New Bedford, Massachusetts

Although Encore Wire has a remarkable history of steady growth and profits, downturns in both the copper and construction industries resulted in significant drop in sales and revenue in 2009 (Hethcock, 2009). Encore’s net sales figure for second quarter 2009 was reported as $159.4 million. This reflects a 49% decrease in the net sales figure when compared to the same period of 2008, which was a healthy $322.8 million (Hethcock, 2009). Relying on the efficiency of its low-cost production model to endure the slump, Encore Wire announced fourth quarter results reflecting an improved 13.1% decrease in sales for fourth quarter 2009 when compared to same quarter sales for 2008. Along with signs of recovery in sales, Encore released a statement from CEO Daniel Jones, in February of 2010, vowing to withstand the “cyclical nature” of the copper and construction industries and reminding investors that Encore maintains a “strong balance sheet” (Bilban, 2010).

Encore Wire affirms its commitment to producing low-cost building wire and cable in the company’s 2010 Annual Report (Encore, 2010). In this document, the corporation outlines strategies deemed key objectives for expanding market share. The strategic objectives Encore Wire identifies for 2010 are

Responsive customer service: Encore Wire Corporation considers positive customer relations as a primary focus of their business.

Product Innovation: Encore Wire is an industry leader in product innovation, having introduced color feeder commercial grade wires with their exclusive Smart Color ID system. Encore is dedicated to introducing products that save time and improve contractor and end-user safety.

Low-cost production and efficient plant design: Encore Wire’s vertical integration strategy continues to yield low production costs and high production quality. Encore remains committed to expanding and improving the single McKinney facility.

Incented work force: Encore currently employs 669 individuals, most of whom receive incentive pay associated with safety, quality, and productivity goals. Employees participate in safety training, receive stock options, and have 401(k) retirement plans available. Encore values an involved, incented workforce.

As Encore Wire Corporation looks toward the future, the corporation plans on remaining an innovative leader in the industry. Toward that goal, the company announced plans for a 12,000 square foot research and development building adjacent to the McKinney campus to be completed by the end of 2010. This expansion reflects a coordinated effort with the McKinney Economic Development Corporation in compliance with a community wide “green building” effort. Plans for the new facility features environmentally-responsible-building materials and methods in an effort to reduce negative impact on the ecosystem. Upon completion Encore Wire’s new R&D building is expected to attain Leadership in Energy and Environmental Design (LEED) certification (Hethcock, 2009). With this new “green” Research and Development facility, Encore Wire plans on leading the industry into a more environmentally responsible and profitable future.


Bilban, F. (2010, February 10). Encore Wire reports fourth quarter results. [Press Release] Retrieved September 19, 2010 from:

Encore Wire. (2008). About Us. Retrieved September 18, 2010 from:

Encore Wire. (2010). Form 10-K. Retrieved September 14, 2010 from: http://www.sec.gov/Archives/edgar/data/850460/000095012310021645/d71241e10vk.htm

Encore Wire. (2009). Investor company presentation. Retrieved September 18, 2010 from:

Hethcock, B. (2009). Encore Wire looks to expand in McKinney. Dallas Business Journal. Retrieved September 18, 2010 from:

Taylor, B. (2007). Power supply: the lone star state’s encore wire corp uses red metal scrap feedstock to supply the nation with commercial-grade. Recycling Today. Retrieved September 19, 2010 from: