Aerial Work Platform Manufacturing in the US Industry Market Research Report Now Available from IBISWorld
The industry’s reliance on the construction center led to a volatile performance over the past five years, both in terms of revenue and profit; however, with private investment and construction expected to make a full-blown recovery over the next five years, operators will enjoy a consistent rise in demand for their products, while a rise in steel prices will allow them to charge higher prices to customers. For these reasons, industry research firm IBISWorld has added a report on the Aerial Work Platform Manufacturing industry to its growing industry report collection.
Los Angeles, CA (PRWEB) March 11, 2013
While the Aerial Work Platform Manufacturing industry grew overall during the past five years, industry revenue in 2013 is expected to remain below prerecession levels. Demand for aerial work platforms is primarily driven by construction activity because they are used by nearly all construction industries. According to IBISWorld industry analyst David Yang, “demand for the industry’s products plummeted when demand for new building and home construction deteriorated during the recession.” Nevertheless, revenue has been rebounding since 2010 on the heels of recovering private-sector investments. As a result, in the five years to 2013, industry revenue is expected to increase at an average annual rate of 0.1% to $4.6 billion.
Growth has been volatile due to sharp contractions in private investment and construction spending during the recession. In 2009, the value of construction in the United States fell 15.4% while private investments dropped 24.8%. As a result, industry revenue plunged 47.6% over the year. By the next year, however, downstream construction firms strongly invested in industry products in anticipation of revived demand for commercial and residential building, causing industry revenue to surge 58.4% in 2010. The recovery is expected to continue through 2013, resulting in revenue growth of 4.5% over the year.
Profitability for the Aerial Work Platform Manufacturing industry was also volatile during the past five years. While steel prices collapsed in 2009, lowering input costs, demand for aerial work platforms endured an even steeper decline during the year, causing profit to fall. The decline continued into 2010 despite strong revenue growth because industry operators maintained low prices to rebuild their customer base. “Steel prices also grew strongly over the year, which contributed to higher input costs,” says Yang. While major players like JLG and Terex Corporation were able to implement cost-saving technology to help preserve margins, the large number of small companies in the industry lacked the capital to make such investments. Many of these small operators were forced to exit the industry, allowing dominant companies to capture more of the market, increasing market share concentration. Nevertheless, profit has since recovered as the remaining companies benefit from rising construction demand.
In the five years to 2018, industry revenue is forecast to grow strongly. The value of construction and aggregate private investment are both anticipated to significantly increase over the next five years, which will result in strong demand for the industry’s products. Meanwhile, technological advances in automation will become more prevalent, which is projected to improve profitability by reducing labor requirements. However, smaller operators are anticipated to struggle to compete since they typically lack the capital to invest in new technology. For more information, visit IBISWorld´s Aerial Work Platform Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures aerial work platforms, including boom lifts, scissor lifts, vertical mast lift and personal portable lifts. Aerial work platforms may be stationary, towed or mounted on trucks.
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/prweb2013/3/prweb10514501.htm