IBISWorld has expanded its industry research report collection to include the Electric Shaver Manufacturing industry.
Los Angeles, California (PRWEB) September 29, 2011
The Electric Shaver Manufacturing industry has experienced a few nicks and cuts during the recession. Since the majority of industry products are discretionary, significant declines in consumer confidence and disposable income have caused demand to fall considerably. IBISWorld market research estimates revenue has declined at an average annual rate of 2.7 percent to $195.4 million during the five years to 2011. Over that same period, domestic demand has increased 0.3 percent per year to $795.3 million. Nevertheless, as consumers regain confidence in 2011, industry sales are expected to post a 0.1% increase from 2010, which will begin to offset damage done during the previous five years.
In addition to falling demand, rising import penetration of cheap Chinese goods has also adversely affected the industry. While the total value of imports has increased 1.6 percent annually since 2006, Chinese imports have increased 4.9 percent per year over the same period. Low prices have enabled this increase; because China has lenient labor laws and cheap wage requirements, Chinese manufacturers can produce goods at lower costs and pass down the savings to domestic buyers. This trend has triggered intense price competition within the industry, placing significant pressure on US manufacturers. In order to remain competitive and promote sales, US firms have been forced to lower their markups. Consequently, profit margins have declined from about 4.9 percent of revenue in 2006 to an estimated 4.5 percent in 2011. With falling margins, industry players have attempted to find relief by offshoring or outsourcing much of their production facilities overseas to low-cost countries. The total number of establishments has decreased as a result, at an average annual rate of 3.8 percent to about 42 facilities.
Demand for the electric shaver market is forecast to experience a temporary boost in 2012, thanks to continued economic recovery. However, imports will likely capture most of this increase in demand in the long-run. In addition, rising and volatile input costs (prices of plastic and steel in particular) will continue to hinder industry profitability. As such, IBISWorld forecasts a rather gloomy industry outlook, with revenue projected to decrease 1.0 percent annually through 2016 to settle at $185.4 million.
For more information, download the full report from IBISWorld on the electric shaver market
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Electric shaver industry Report Table of Contents
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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