Seismic-Monitoring Equipment Manufacturing in the US Industry Market Research Report Now Available from IBISWorld
The recession hurt industry firms because it caused sharp drops in exploration activity, but, in the five years to 2018, industry demand will pick up as the prices of oil and gas increase. For these reasons, industry research firm IBISWorld has added a report on the Seismic-Monitoring Equipment Manufacturing industry to its growing industry report collection.
Los Angeles, California (PRWEB) July 30, 2013
The Seismic-Monitoring Equipment Manufacturing industry trembled during the past five years. Demand for industry products is heavily driven by petroleum and natural resource exploration activity, which sharply contracted during the recession. As a result, revenue for downstream geophysical services and oilfield services providers plummeted, thereby lowering demand for industry products. “Industry revenue has also been constrained because of low domestic petroleum prices, due to the shale gas boom and pipeline capacity shortages in the United States,” according to IBISWorld industry analyst David Yang. Low petroleum prices further constrained oil and gas exploration activity. As a result, industry revenue is estimated to fall an annualized 2.2% to $809.8 million during the five years to 2013.
During the past three years, Seismic-Monitoring Equipment Manufacturing industry operators have repaired cracks in demand for seismic instruments. The depreciated dollar helped fuel exports growth in 2010 and 2009, bolstering industry revenue during the period. Government agencies, such as the US Geological Survey, also provided stable demand for this industry. In 2013, IBISWorld expects industry revenue to slowly grow 0.7% as downstream demand continues to recover. “While revenue crumbled in the past five years, profitability has stood on steadier ground during the same period,” says Yang. Profit margins deteriorated during the recession but have recovered since then due to cost-cutting measures. Firms trimmed the labor force and reduced wage costs, while investments in industrial automation also bolstered manufacturing efficiency.
A very high level of market share concentration characterizes the Seismic-Monitoring Equipment Manufacturing industry. This industry provides a specialized product, and many firms have close working relationships with major downstream customers. Additionally, industry operators specialize in separate product segments. For instance, major player Bolt Technology Corporation primarily produces marine seismic exploration technology, while Compagnie Generale de Geophysique specializes in seismic exploration cables. As such, demand for each firm is relatively stable, resulting in minimal market share concentration shifts. Other major players include ION Geophysical and Geospace Technologies Corporation.
Industry operators will experience renewed demand over the next five years. Investments in petroleum pipelines, such as the Keystone XL pipeline, will bolster oil and gas export volume. As petroleum products are exported, domestic crude oil and gas prices will increase. Rising prices will provide an incentive for oil and gas extraction firms to expand production, which will translate to strengthened revenue growth for firms providing oil and gas surveying services. Downstream geophysical services and oilfield services providers will in turn purchase new seismic-monitoring equipment from industry operators. As a result, industry revenue is expected to grow in the five years to 2018.
For more information, visit IBISWorld’s Seismic-Monitoring Equipment Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures seismic-monitoring equipment that can detect geophysical movements and characteristics. This equipment is used for oil and gas exploration, scientific research, ongoing monitoring and marine-based research.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/2013/7/prweb10980291.htm