Dye & Pigment Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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After volatile performance over the past five years, the Dye and Pigment Manufacturing industry is expected to continue struggling against increased import penetration. The US economy's returning health bodes well for industry products, which are used as inputs for a variety of other manufacturing industries. However, industry players are consolidating and reorganizing production in hopes of offsetting rising oil and raw materials prices. For these reasons, industry research firm IBISWorld has updated its report on the Dye and Pigment Manufacturing industry.

IBISWorld Market Research

IBISWorld Market Research

Industry demand depends heavily on strong performance in the overall manufacturing sector

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.

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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.

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
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