Increased fixed investment and housing investment are projected to support growth
Los Angeles, CA (PRWEB) February 02, 2012
The Aerial-Lift Truck Manufacturing industry is heavily dependent on the health of the US construction sector. Unfortunately for the industry, the steep decline in construction activity since the housing market collapse and subsequent recession in the late 2000s severely cut demand for aerial lifts. Specifically, the industry depends on demand from utilities and infrastructure construction since lifts are used heavily in the maintenance of utilities and telecommunication lines, trimming of trees and a range of infrastructure projects. “Despite recessionary federal stimulus measures, funds failed to support sufficient demand to raise the industry out of its slump,” says IBISWorld industry analyst Brian Bueno. In 2009, industry revenue declined about 37.0%. And despite a 34.4% rebound in 2010, sales revenue remained below prerecession highs.
The difficulties of recent years reinforced a long history of decline in the number of industry firms. In 2000, more than 50 companies manufactured aerial-lift trucks in the United States. But, according to Bueno, that number has declined consistently since and recorded a steep fall between 2007 and 2009, when about 14 firms exited the industry. Negative demand conditions forced firms into bankruptcy and eventually industry exit, while larger companies like major player Terex Corporation were capable of withstanding the downturn and sought to acquire others. Over the five years to 2012, the total number of firms in the Aerial-Lift Truck Manufacturing industry has declined at an average annual rate of 4.8%.
Although economic conditions improved over 2011, revenue recorded a minimal increase due to local and state cuts in maintenance and infrastructure projects. Stronger growth in the US economy, increased fixed investment activity and an upward trend in housing investment (i.e. subscriptions to telecommunications and electric power connections) are projected to support revenue growth. Total industry revenue will remain below its peak of $5.2 billion in 2007, though, resulting in an annualized decline of 4.5% over the past five years. As the economy improves, rising employment will increase consumer spending, tax revenue and, consequently, demand for private and publicly funded construction projects, particularly in the utilities and transmission line markets. For more information visit IBISWorld’s Aerial-Lift Truck Manufacturing in the US industry page.
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IBISWorld industry Report Key Topics
Companies in this industry manufacture trucks that are equipped with aerial lifts. Aerial lifts are mechanical devices that are installed on the bed of the truck and used to reach equipment at various heights. Types of lifts include telescopic, articulating and combination aerial lifts.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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