After fighting declines, the Laboratory Fume Hoods Manufacturing industry has begun to recover, with revenue forecast to perk up in 2011 and 2012
Los Angeles, CA (PRWEB) October 20, 2011
After fighting declines, the Laboratory Fume Hoods Manufacturing industry has begun to recover, with revenue forecast to perk up in 2011 and 2012. IBISWorld, the nation’s largest publisher of industry research, anticipates that revenue will increase at an average annualized rate of 3.5% to $748.1 million through 2016, with revenue growing 6.0% to $631.2 million in 2012. Revenue growth will primarily occur because of expanding research and development (R&D) budgets growing on the back of record high corporate profit. For this reason, IBISWorld has expanded its industry research report collection to include Laboratory Fume Hoods Manufacturing and other industries within laboratory devices and the life sciences sector.
The Laboratory Fume Hoods Manufacturing industry has been blown away by the gusts of the recession. This industry manufactures ventilation devices that are designed to limit exposure to hazardous or noxious fumes, vapors or dusts. As the economy started showing signs of weakness and the United States retreated into a recession, demand for industry products fell, and revenue declined. When revenue for businesses and laboratories fell, they could not justify investing in new lab equipment such as fume hoods. As a result, the industry's revenue is expected to decline at an average annual rate of 0.6% to $631.2 million in the five years to 2011. However, revenue is forecast to turn the corner and grow 1.6% in 2011, according to IBISWorld, the nation’s largest publisher of industry research.
R&D spending is tied to total corporate revenue; as a result, it moves closely with the overall economy. As revenue tightened during the recession, businesses cut back on funding research to develop new products. R&D expenditure fell significantly in 2009, with total spending dropping by 8.0%. The decline in R&D spending resulted in lower investment in laboratory and safety equipment such as fume hoods. During 2010, the economy started to turn the corner and corporate profit returned, following the downturn in 2008 and 2009. Total R&D expenditure rose 3.3% in 2010 and is forecast to rise 4.5% in 2011. Despite the cutback in R&D expenditure, the industry has benefited from new product offerings. Manufacturers like Thermo Fisher Scientific Inc., Kewaunee Scientific Corporation, and Labconco are increasingly offering systems that save energy through lower air volume while at the same time adhering to changing regulations and testing standards. Ductless hoods have further improved energy efficiency and cost savings by using activated carbon filters to remove toxins from the airstream.
Major products and services in the industry include Benchtop fume hoods, Canopy fume hoods, Custom fume hoods and Floor-mounted fume hoods, which are all covered in-depth in IBISWorld’s latest report findings.
According to IBISWorld analyst, Nima Samadi, over the five years to 2016, the Laboratory Fume Hoods manufacturing industry is projected to grow at a faster rate as companies invest in new products again; in turn, increasing their R&D expenses. “The Laboratory Fume Hoods Manufacturing industry is forecast to grow at an average annual rate of 3.5% to $748.1 million over the next five years,” says Samadi. “Exports are expected to grow at a rate of 5.8% to $143.0 million during the five years to 2016.” One of the primary impetuses of that growth will be an increase in demand for US laboratory fume hood products in Asia Pacific. Strong growth in research capabilities among private, government and educational institutions in China and the rest of Asia will likely drive growth in exports.
For more information, download the full report from IBISWorld on the Laboratory Fume Hoods manufacturing industry
Laboratory Fume Hoods Manufacturing industry Report Table of Contents
About this Industry
Industry at a Glance
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Jargon & Glossary
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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.