Industry demand depends heavily on strong performance in the overall manufacturing sector
Los Angeles, CA (PRWEB) October 15, 2012
With less than 1.0% of total chemical sector numbers, the Dye and Pigment Manufacturing industry is a very small component of the overall US chemicals sector. However, its products are key chemical intermediate products used by other chemical manufacturing segments, such as coatings and ink manufacturers, says IBISWorld industry analyst Radia Amari. Over the past five years, the industry has faced a number of challenges, including historically high raw material costs, volatile demand and increased competition from abroad. Demand for the industry's products weakened in the face of the struggling domestic automotive industry and a housing slump caused by deep recessionary conditions.
Under the influence of these conditions, industry revenue from 2007 to 2012 has fallen at an estimated average annual rate of 1.3% to $7.3 billion. However, this trend has not been constant throughout the five years. Revenue grew substantially prior to the recession, in line with the thriving economy and high manufacturing levels. As with most of manufacturing industries, the recession crippled industry revenue as customers reduced their purchases. The industry is expected to experience some gains in 2012, with revenue projected to increase 2.9%, says Amari. However, the industry's long-term recovery will continue to be hampered by intensifying global competition as China increasingly dominates the world's consumption and production of pigments. The Dye and Pigment Manufacturing industry has a low level of market share concentration, reflecting the fragmented nature of establishments and diversified product lines. Over the five years to 2012, concentration has increased because many firms exited the industry or were acquired by larger players.
From 2012 to 2017, the industry is projected to expand. The industry will continue to face competition from foreign importers and the price of raw materials will continue to rise, limiting profit margins. Companies are expected to improve efficiency and employment is forecast to drop. Some firms are also expected to move overseas or leave the industry entirely; in the five years to 2017, the number of companies is forecast to fall. For more information, visit IBISWorld’s Dye and Pigment Manufacturing in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry manufactures synthetic organic and inorganic dyes and pigments, such as lakes and toners (except electrostatic and photographic). As such, the industry produces various pigments and dyes, including color, lead, chrome, metallic and zinc-based pigments as well as disperse, vat and direct dyes. A chemical intermediate product, these pigment and dyes are used to impart color to numerous products.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.