Los Angeles, California (PRWEB) December 01, 2011
Revenue in the Demolition Equipment Manufacturing industry is forecast to pick up in 2012 and 2013 as non-residential construction activity increases, according to a new report released today by IBISWorld, the nation’s largest publisher of industry research. Industry growth will then soften as the economy settles on a weaker long-term growth path and manufacturers shift production offshore. Over the five years to 2016, IBISWorld estimates that revenue will increase at an average annual rate of 2.6% to $7.0 billion, including growth of 2.8% in 2012. For this reason, industry research firm IBISWorld has added a report on the Demolition Equipment Manufacturing industry to its growing Construction Machinery Manufacturing report collection.
The Demolition Tools & Equipment Industry was flattened by the recession. The industry's performance is closely tied to the construction market, since property developments often involve demolishing existing buildings and structures and cleaning up sites to make way for new construction. Prior to the recession, the industry was charging along, spurred by strong demand for commercial, residential and infrastructure construction. However, the collapse of the real estate market crippled the construction and demolition markets, causing downstream construction industries to purchase less demolition equipment. According to IBISWorld analyst, Nima Samadi, the Demolition Tools & Equipment Manufacturing industry is slowly fighting its way back, with revenue having grown 7.3% in 2010 as a result of pent-up demand for demolition equipment and the freeze over the construction industry slowly thawing. Industry revenue is expected to decline at an average rate of 0.6% per year to $6.1 billion in the five years to 2011, with revenue expected to perk up by an additional 0.2% in 2011.
Before the financial crisis, exports in the Demolition Tools & Equipment Industry demonstrated strong growth as firms looked to emerging countries for new markets. Since 2007, US firms like Caterpillar (Cat, Olympian , Turbomach, MaK) and Terex have expanded heavily into emerging markets in Asia, Latin America and Eastern Europe. Demand for demolition machinery is expected to rebound strongly in emerging markets over 2011, with exports growing 6.4%. The Chinese government's $590.0 billion stimulus package and booming housing market will continue to drive demand for demolition equipment. Indian and Latin American countries are also expected to demonstrate solid growth over 2011, fueling demand for demolition equipment in these markets.
Industry revenue is slowly lifting as better economic conditions and stronger construction activity encourage companies to invest in new machinery and equipment. IBISWorld anticipates that revenue will increase at an average annual rate of 2.6% to $7.0 billion in 2016, including growth of 2.8% in 2012. “The growth will largely be driven by resurgence in non-residential construction and housing starts,” says Samadi. Non-residential construction is set to grow at an average rate of 11.0% per year over the five years to 2016, while the number of housing starts is projected to increase by 22.4% during the same period. These trends will likely result in a corresponding rise in demand for demolition and demolition equipment, driving industry growth.
For more information, including latest trends, statistics, analysis and market share information, download the full report from IBISWorld on the Demolition Tools & Equipment Industry.
IBISWorld Demolition Tools & Equipment Industry Market Research Reports Contain:
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.
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