Explosives Manufacturing Industry: Slow Downstream Demand Will Push Manufacturers to Introduce Value-added Packages, According to a New Report

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Over the five-year period to 2016, growth in revenue for the US Explosives Manufacturing industry is projected to remain moderate, reaching an estimated $2.3 billion by the end of the period and growing an average of 2.9% per year, according to IBISWorld, the nation’s largest publisher of industry research. With the exception of 2012, when revenue is expected to grow 5.1%, year-on-year growth rates are anticipated to be in line with those of the general economy. A key driver will be the level of activity in various mining and quarrying industries, particularly the coal mining industry, which is currently contending with a slowdown in electricity consumption and increases in alternative energy generation sources, including natural gas and hydroelectric power.

IBISWorld Market Research

IBISWorld Market Research

The explosives industry is expected to benefit from strong commodity demand from China and India

Over the five-year period to 2016, growth in revenue for the US Explosives Manufacturing industry is projected to remain moderate, reaching an estimated $2.3 billion by the end of the period and growing an average of 2.9% per year, according to IBISWorld, the nation’s largest publisher of industry research. With the exception of 2012, when revenue is expected to grow 5.1%, year-on-year growth rates are anticipated to be in line with those of the general economy. A key driver will be the level of activity in various mining and quarrying industries, particularly the coal mining industry, which is currently contending with a slowdown in electricity consumption and increases in alternative energy generation sources, including natural gas and hydroelectric power.

Since the invention of dynamite and the blasting cap, explosives have played a small but important role within the United States' economic development. They have performed a dominant role not only in shaping the nation's mining and minerals industries, but also in oil and gas exploration, power production and the construction of pipelines, tunnels and motorways. The US Explosives Manufacturing industry is a relatively small component of the nation's overall chemical sector, comprising roughly 45 enterprises and employing about 5,900 people.

With growing demand for base metals, minerals and coal driving increased mining activity, industry revenue is expected to grow 2.7% to $2.0 billion in 2011. Booming demand in prerecession years, however, inflate average annual industry revenue growth to 5.0% over the five years to 2011. Over the same period, the industry was characterized by consolidation activity and increased globalization. For example, the Australian chemicals and explosives firm Incitec Pivot Ltd. acquired the largest industry firm, Dyno Nobel, in 2008 for $2.7 billion. Over the five years to 2011, the total number of domestic industry firms is projected to decrease at an average annualized rate of 3.2%.

According to IBISWorld analyst, Brian Bueno, in 2016, the Explosives Manufacturing Industry is forecast to generate revenue of roughly $2.3 billion, which represents a five-year annual growth average of 2.9%. “In the near-to-long term, the industry is expected to benefit from strong commodity demand from China and India, which will help fuel a new commodities growth cycle,” says Bueno. Growth in value-adding explosives services (such as virtual blasting or product delivery) will continue to underpin growth in the industry, especially in mature market sectors, as well as provide a means for differentiation.

For more information, download the full report from IBISWorld on the Explosives Manufacturing Industry

IBISWorld Industry Market Research Reports Contain:

About this Industry
Industry Definition
Main Activities
Similar Industries
Additional Resources

Industry at a Glance

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets
Supply Chain
Products & Services
Major Markets

Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry

Major Companies

Operating Conditions
Capital Intensity

Key Statistics
Industry Data
Annual Change
Key Ratios

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.

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