Shell and Tube Heat Exchanger Manufacturing in the US Industry Market Research Report Now Available from IBISWorld. Downstream Industries Keep Demand Flowing

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The recession has highlighted the strong interdependence between the Shell and Tube Heat Exchanger Manufacturing industry and the health of industrial manufacturing markets. For this reason, industry research firm IBISWorld has added a report on the Shell and Tube Heat Exchanger Manufacturing to its growing report collection. The effect of the recession became clear over the course of 2009, as revenue and demand fell suddenly. Conditions improved in 2010 and 2011, and this trend is expected to continue in 2012 with industry revenue growing 1.7% to $1.1 billion from 2011 to 2012. Over the last five years many industry products have become standardized, causing product pricing to become the primary basis of competition. This development ultimately favors foreign manufacturers and has resulted in imported goods satisfying an increasing amount of the domestic market, even during the unfavorable economic climate. The increasing level of foreign competition will result in the number of establishments declining at a rate of 2% per year.

IBISWorld Market Research

IBISWorld Market Research

Larger firms have continued to grow in global markets, which have mitigated losses generated by the deterioration of the domestic market

The US recession has highlighted the strong interdependence between the Shell and Tube Heat Exchanger Manufacturing industry and the health of industrial manufacturing markets. The effect of the recession became clear over the course of 2009, as revenue and demand fell suddenly. According to IBISWorld industry analyst, Nima Samadi, “conditions improved in 2010 and 2011, and this trend is expected to continue in 2012 with industry revenue growing 1.7% to $1.1 billion from 2011 to 2012.”

The Shell and Tube Heat Exchanger Manufacturing industry relies heavily on several key markets to purchase its products. Samadi adds that “among commercial and institutional markets, 2010 and 2011 has been a mixed bag. While the power generation and electric utilities markets’ revenue has increased, structural problems within the industries have created disincentives to invest in infrastructure improvements. However, some segments have performed well through the recession. Revenue from food and beverage processors has grown, with rising dairy prices increasing demand from dairy producers.” The utility services market is expected to grow as energy output increases from existing facilities, demanding the replacement of existing heat exchangers with higher-capacity units.

Many industry products have become standardized, causing product pricing to become the primary basis of competition. This development ultimately favors foreign manufacturers and has resulted in imported goods satisfying an increasing amount of the domestic market, even during the unfavorable economic climate. The increasing level of foreign competition will result in the number of companies declining at a rate of 2% per year over the next five years.

The Shell and Tube Heat Exchanger Manufacturing industry consists of four firms that make up over 60.0% of industry revenue. Industry concentration has also been increasing. Over the past five years, many small and medium sized firms have exited the industry, while some of the larger players have engaged in major merger and acquisition activity. The larger firms have also continued to grow through increasing their presence in global markets, which has mitigated losses or downturns in revenue generated by the deterioration of domestic markets. Industry major players include Modine Manufacturing Company and Chart Industries.

For more information visit IBISWorld’s Shell and Tube Heat Exchanger Manufacturing industry

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This industry manufactures shell and tube heating exchangers, which are the most common heat exchangers used in oil refineries and other large chemical processes. In addition to their manufacturing activities, firms also provide installation services for their products. Heat exchangers allow thermal energy to be transferred between fluids while keeping them separate.

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

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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Gavin Smith
IBISWorld
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