Turning Pages: Libraries and Archives in the US Industry Market Research Report Now Available from IBISWorld
Rising unemployment and falling disposable income during the recession resulted in declining tax revenue for state and local governments, which necessitated budget cuts for public libraries; but because many public libraries serve as the only source of free computers and wireless internet in their community, according to the American Library Association, funding is anticipated to rise as the economy recovers and tax revenue increases. For these reasons, industry research firm IBISWorld has added a report on the Libraries and Archives industry to its growing industry report collection.
Los Angeles, CA (PRWEB) July 17, 2013
The Libraries and Archives industry has suffered from declining government funding during the past five years. According to the Institute of Museum and Library Services, state and local governments account for more than 90.0% of public library revenue, and struggling state and local government budgets resulted in considerable cuts to public library funding. Similarly, federal government grants to public libraries also contracted following the recession, especially due to growing concerns regarding the deficit, says IBISWorld industry analyst David Yang. “Private libraries, which are funded through membership fees and endowment funds, also experienced tightening funding, because falling disposable income made consumers less willing to purchase private library memberships.” As a result, in the five years to 2013, IBISWorld expects industry revenue to fall at an average annual rate of 1.1% to $15.1 billion.
Declining government support during the past five years can be entirely attributed to the recession. Rising unemployment and falling disposable income resulted in declining tax revenue for state and local governments, which necessitated budget cuts. Because many public libraries serve as the only source of free computers and wireless internet in their community, according to the American Library Association, funding is anticipated to rise as the economy recovers and tax revenue increases. Although all public libraries and most private libraries operate on a nonprofit basis, cost control has been important over the past five years, especially as government funding decreased. According to Yang, “Library privatization has grown over the period. Local governments have been contracting out library operations to private for-profit firms, which can cut costs by centralizing operations and implementing flexible wages and benefits.”
The Libraries and Archives industry is characterized by low market share concentration. Public libraries are provided throughout the United States so that Americans are able to access information for free. Concentration of libraries and archives are typically dependent on the size of the population in the region; however, other factors, such as the number of colleges, average age of citizens and historical importance, may cause that number to vary. Libraries and archives are typically government run, so private and investor-owned establishments do exist. There is limited scope to operate multiple libraries and win significant market share due to the number of public libraries that private establishments compete with.
Government funding is anticipated to rise as economic growth picks up in the coming five years. Rising disposable income levels will also bolster consumer donations to libraries. Furthermore, according to the American Library Association, library visit frequency is correlated with education levels. As the number of students steadily increases over the next five years, demand for libraries services will grow. For more information, visit IBISWorld’s Libraries and Archives in the US industry report page.
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IBISWorld industry Report Key Topics
Industry establishments provide library or archiving services, maintaining collections of documents for informational, research, educational or recreational needs. Libraries store historical documents, photographs, maps, audio material and audiovisual material, and make them accessible to the public. This industry includes both public and private libraries, but excludes university libraries, corporate libraries and establishments that do not primarily provide library services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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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/prweb10940532.htm