The increasing popularity of portable digital music players smart phones have resulted in heightened sales of loudspeaker systems
Los Angeles, California (PRWEB) December 07, 2011
The Loudspeaker Manufacturing industry is set to experience moderate growth, according to a new report released by IBISWorld, the nation’s largest publisher of industry research. During the next five years, the Loudspeaker Manufacturing industry will follow a modest rebound in consumer spending. Consumer spending heavily influences activity among manufacturing industries. As consumers open up their pocket books, the demand for goods grows and manufacturing activity rises. According to the Bureau of Economic Analysis, consumer spending is forecast to grow at an average annualized rate of 2.3% during that period, compared with only 1.2% in the five years to 2011. The industry will also benefit from the continued adoption cell phones that play digital music, with attachable loudspeakers becoming increasingly popular during the next five years. For this reason, industry research firm IBISWorld has added a report on the Loudspeaker Manufacturing industry to its growing Computer & Semiconductors Systems report collection.
Manufacturers in the Loudspeaker industry produce a range of speakers including, full-range drivers, Woofer and subwoofer drivers, Mid-range drivers and tweeters. The Loudspeaker Manufacturing industry has stumbled over the past five years. Industry revenue is expected to drop 12.9% per year to $1.4 billion in the five years to 2011. Industry players increasingly offshored facilities over the past five years to the detriment of industry revenue as fewer products were produced in the United States. Low-cost labor and lax environmental manufacturing restrictions in China and other emerging economies prompted industry firms to produce abroad. Although this trend resulted in revenue drops, the recession exacerbated declining revenue trends as consumers pulled back on loudspeaker purchases. In turn, industry players slowed their manufacturing activity. Industry revenue experienced its quickest declines during the depths of the recession in 2008, falling 26.1% from 2008 to 2009.
However, according to IBISWorld analyst, Justin Molavi, the industry has found some recent avenues for revenue growth. “The increasing popularity of portable digital music players smart phones have resulted in heightened sales of loudspeaker systems,” says Molavi. Additionally, firms that focused on high-end audio products were largely spared from the malaise of the recession, as the luxury market did not falter as much as other market segments. As a result, industry revenue grew 4.3% from 2010 to 2011, as growing sales of speaker systems for mobile digital devices and heightened revenue from the sales of high-end audio, adding to the industry's top line. Nonetheless, industry revenue still remains well below prerecession levels.
The next five years are expected to be brighter for the Loudspeaker Manufacturing industry. Consumer spending is expected to gain ground, as the US economy gains strength and consumer confidence heightens. US producers, such as the Bose Corporation headquartered in Framingham, MA, will continue to invest in research and development to advance high-end audio products that cater to the luxury market and expected growth in consumer spending. However, offshoring will still adversely affect the industry as cheap imports continue to eat away at anticipated revenue gains over the next five years. As a result of these trends, industry revenue is expected to grow 1.1% per year to $1.5 billion in the five years to 2016.
For more information, including latest trends, statistics, analysis and market share information, download the full report from IBISWorld on the Loudspeaker manufacturing industry
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