Many consumers opted to take their money out of banks and purchase home safes to safeguard their money and valuables
Los Angeles, CA (PRWEB) December 13, 2011
Long-term demand for the safe and vault manufacturing industry is secure, as falling prices are increasing the attainability of safes and vaults for the average consumer, according to a new report from IBISWorld, the nation’s largest publisher of industry research. While growth will slow slightly in response to rising consumer confidence in banks and other financial institutions, the industry will still benefit from the continued recovery of the housing market and business landscape. The industry will also be buoyed by steady demand for firearms and limited fluctuations in the price of steel and other inputs. Over the five years to 2016, revenue is forecast to grow at an average annual rate of 4.0% per year to $1.0 billion. In 2012 alone, revenue is projected to grow 3.2% to $891.0 million. For this reason, industry research firm IBISWorld has added a report on the safe and vault manufacturing industry to its growing Security & Safety Systems report collection.
During the past five years, the lack of financial stability has been a boon for the Safe and Vault Manufacturing industry. In 2008 and 2009, a growing number of consumers lost confidence in banks and chose to safeguard their own money, boosting demand for in-home safes and vaults. This trend occurred as a number of other trends constrained growth, such as the collapse in the housing market and an adverse business climate. Over the five years to 2011, industry revenue is expected to grow at a rate of 5.3% per year, with an increase of 1.8% to $863.1 million in 2011.
According to IBISWorld analyst, Nima Samadi, about 324 banks failed during the past five years. Given this uncertainty and instability, “many consumers opted to take their money out of banks and purchase home safes to safeguard their money and valuables,’ says Samadi. As a result, safe and vault manufacturing revenue grew 12.0% in 2008 and 6.8% in 2009. This growth occurred (among consumer and home safes), even though housing starts plummeted between 2006 and 2008, which hurt the industry because most safes are purchased alongside home purchases. Furthermore, the number of US businesses declined for the first time in nearly two decades during 2008 and 2009. New retail projects, such as malls, chain retailers and franchise outlets, experienced tepid to non-existent growth as a result of the downturn, which reduced demand for safes and vaults that generally accompany these retail spaces. However, business confidence and the number of businesses have risen in 2010 and 2011, and these factors will likely continue to rise.
Demand for gun safes has also surged in response to rising demand for firearms. Civilian gun sales spiked because of concerns about potential law changes by the Obama administration and fears over a possible increase in crime due to the poor economy, which has increased demand for gun safes.
Long-term demand for safe and vault manufacturers is locked down. While growth will slow slightly in response to rising consumer confidence in banks and other financial institutions, the industry will benefit from the continued recovery of the housing market and business landscape. Steady demand for firearms and limited fluctuations in the price of steel and other inputs will also buoy the industry. Over the five years to 2016, revenue is forecast to grow at an average annual rate of 4.0% per year to $1.0 billion, with revenue projected to grow 3.2% to $891.0 million in 2012.
For more information, including latest health trends, statistics, analysis and market share information on Security & Safety Systems, download the full report from IBISWorld on the Safe and Vault Manufacturing industry
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