Revenue growth is slowly lifting as better economic conditions and stronger construction activity encourage companies to invest in new equipment such as truck-mounted cement mixers
Los Angeles, CA (PRWEB) December 16, 2011
Revenue growth in the Truck-Mounted Cement Mixer Manufacturing industry is forecast to pick up in 2012 and 2013, as non-residential construction activity increases, according to IBISWorld, the nation’s largest publisher of industry research. This will benefit companies including Schwing America Inc., which manufactures cement mixers through the Stetter brand. 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 projects that revenue will increase at an average annual rate of 2.6% to $2.9 billion. For this reason, industry research firm IBISWorld has added a report on the Truck-Mounted Cement Mixer Manufacturing industry to its growing Construction Machinery Manufacturing collection.
According to IBISWorld, demand for the Truck-Mounted Cement Mixer Manufacturing industry is largely determined by demand for concrete work. In turn, the performance of residential, non-residential, infrastructure, utilities and other construction markets drives demand for concrete work. The industry experienced strong growth in the first half of the five years to 2011. Then, as the economy sank into a recession and unemployment rose from 2007 to 2009, construction projects were shelved. The bubble in housing prices became apparent, slowing the pipeline of commercial projects to a relative crawl. At the same time, fewer tax dollars were available, so funding for highway budgets reversed as the government tried to minimize deficits. The rapidly dwindling number of job sites spoiled demand for the concrete work that often accompanies this construction activity, reducing downstream demand for cement trucks that deliver the concrete.
Prior to the recession, the booming construction sector and robust demand for cement trucks from emerging markets underpinned solid revenue and profitability growth. When the financial crisis erupted in 2008, the industry's fortunes soured. The housing market collapse and global recession dramatically reduced demand for cement work and concrete trucks. While domestic demand remained weak in 2010, revenue rebounded as dealers restocked inventory. Meanwhile, exports to China and other emerging markets jumped. In 2011, the positive restocking and exporting trends have continued, and revenue is estimated to increase. Revenue has fallen at an estimated average annual rate of 0.6% over the five years to 2011, due to recession-related declines offsetting previous growth. Industry employment has also fallen as firms reduced employment in response to the severe decline in demand.
“Revenue growth is slowly lifting as better economic conditions and stronger construction activity encourage companies to invest in new equipment such as truck-mounted cement mixers,” says IBISWorld analyst Nima Samadi. In the next five years, emerging markets in Asia and South America will likely be fertile sources of demand for industry exports. IBISWorld projects that revenue in the Truck-Mounted Cement Mixer Manufacturing Industry will increase at an average annual rate of 2.6% to $2.9 billion in 2016, including growth of 2.8% in 2012.
For more information, including latest Industry trends, statistics, analysis and market share information, download the full report from IBISWorld on the Truck-Mounted Cement Mixer Manufacturing Industry
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