Plastic Pipe and Parts Manufacturing in the US Industry Market Research Report from IBISWorld has Been Updated
With the economy set to recover, a number of markets will benefit from renewed interest, driving downstream demand for plastic pipe and parts, particularly from agricultural, construction and automotive markets, with the low price and lightweight quality of plastic continuing to draw in customers. For these reasons, industry research firm IBISWorld has updated a report on the Plastic Pipe and Parts Manufacturing industry in its growing industry report collection.
Los Angeles, CA (PRWEB) April 23, 2013
All has not been flowing smoothly in the Plastic Pipe and Parts Manufacturing industry. In 2009, dramatic reductions in revenue occurred across the board, and major players responded by making cuts to their workforces. The industry’s change in fortune has been attributed to a decline in demand for its products, primarily from the construction and automotive markets. “During this same period, however, the industry has been buoyed by the utilities and agriculture industry,” says IBISWorld analyst Natalie Everett. “Rising population rates have increased the need for plastic pipes to replace older infrastructure and efficiently distribute water to agriculture.” It has not been enough to keep the industry from declining, though. Over the five years to 2013, IBISWorld estimates that revenue declined at an annualized rate of 3.3% due to its drastic drop during the recession.
Industrial manufacturing and construction comprise an estimated 48.2% of the Plastic Pipe and Parts Manufacturing industry‘s major markets. The domestic car and automotive manufacturing market, which makes up most of the industrial manufacturing sales, experienced reductions in its own output and revenue, further shrinking demand for this industry’s products. Automobile manufacturing has been recovering since the recession, though, and is expected to grow in 2013. Meanwhile, “the construction industry found itself with considerably less cash flow from sectors that were its most steady customers, due to the meltdown of the housing market and subsequent reduction in demand for new construction,” says Everett. As the market also improves with economic recovery, the value of residential construction is expected to jump in 2013.
Companies have been turning to consolidation to achieve greater operating efficiencies in an increasingly competitive economic climate. For instance, major player Advanced Drainage Systems made three acquisitions from 2010 to 2013. As a result of acquisition activity, the number of industry firms declined at an estimated average annual rate of 2.3% per year to 999 over the five years to 2013. Other major companies include JM Eagle, Saudi Basic Industries Corp. and CertainTeed Corp.
In the coming years, growth in the utilities and agriculture markets will help offset volatility in demand from others, such as construction, leaving the industry less vulnerable to market conditions outside of its own control. For more information, visit IBISWorld´s Plastic Pipe and Parts Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures a range of plastic pipes, plastic fittings for plastic pipes and nonlaminated plastic profile shapes, such as rods, tubes, plates and car parts. This industry does not include plastic hose fixtures, plastic plumbing fixtures or plastic packaging.unlaminated plastic profile shapes such as rods, tubes, plates and car parts. This industry does not include plastic hose fixtures, plastic plumbing fixtures, or plastic packaging.
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/prweb2013/4/prweb10660432.htm