Rising exports and demand for energy-efficient equipment will help revenue rebound
Los Angeles, CA (PRWEB) October 05, 2012
The US Commercial Dishwasher Manufacturing industry continued its decade-long decline over the past five years. IBISWorld estimates that from 2007 to 2012, industry revenue declined at a 1.5% average annual rate. Steady declines in the number of industry firms, establishments and employees were further accelerated by the sharp contraction in domestic and worldwide demand for commercial dishwashers during the recession. The industry has continued to face strong and higher competition from cheaper, high-quality imports from Europe, Canada and the Asia-Pacific region. According to IBISWorld industry analyst Doug Kelly, to counteract falling demand, higher competition and rising cost pressures, industry operators increasingly offshored and outsourced part or all of their production. Industry revenue rebounded in 2010 and exhibited slow growth in 2011. Increases in exports helped drive this growth, particularly to Canada, Saudi Arabia and Brazil. Growth in the number of domestic restaurant and hospitality establishments supported a steady increase in demand for commercial dishwashers from equipment wholesalers from 2010 onward. In particular, demand for newer energy- and water-efficient commercial dishwasher models has been strongest. As a result, industry revenue is forecast to rise 2.9% in 2012 to about $509.0 million. However, higher competition from imported commercial dishwashers has kept demand from wholesalers and industry revenue still well below 2007 levels.
The outlook for the Commercial Dishwasher Manufacturing industry is brighter than the past five years. The industry will remain in the declining phase of its life cycle but show modest signs of growth, says Kelly. IBISWorld forecasts that industry revenue will increase over the next five years. Exports and new product development will underpin this growth. New global markets will open up for products that integrate “smart” electrical control technologies that reduce device water and energy consumption. However, a strengthening US dollar and continued rising competition from imports will keep industry revenue and profit subdued over the next five years.
Concentration in the domestic industry is low. The domestic industry is highly fragmented and competitive, with major import penetration increasing the competitiveness of US firms. There are several foreign firms that have large market shares in the United States. Sweden-based Electrolux garners the largest market share of domestic demand for commercial dishwashers. Italian Ali Group has managed to penetrate the American market and continues to put pressure on domestic firms to lower prices. Although the number of firms has decreased over the five years to 2012, this trend has been driven by consolidation, offshoring and outsourcing. It has become more cost effective for firms to ship factories overseas than merge with existing firms to benefit from domestic economies of scale. Regional manufacturers of industry products continue to remain competitive due to lower shipping costs and established relationships with industry customers. These trends have caused overall domestic market share per firm to increase only incrementally. For more information, visit IBISWorld’s Commercial Dishwasher Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes firms that manufacture commercial dishwashers for end consumers such as restaurants, hotels and military establishments. Products include conveyor dishwashers, undercounter dishwashers and door-type dishwashers.
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.