Rising industrial activity and strong demand from exports will stimulate industry growth
Los Angeles, CA (PRWEB) February 16, 2012
Actuators are a key process component for the industrial economy. The Actuator Manufacturing industry's key markets include manufacturers of machinery for the construction, transportation and aerospace sectors. According to IBISWorld industry analyst Brian Bueno, “despite the range of markets that the industry serves, the economic fallout caused many major downstream industries to experience dramatic declines in demand.” The strength of major export markets helped mitigate this fall. Nevertheless, the economic downturn that affected the global marketplace pulled revenue down by an estimated 20.2% in 2009, following nearly a decade of consecutive growth. The industry rebounded in 2010, as demand from automobile manufacturers and other manufacturing industries revived. Nevertheless, continued weakness in the US construction market failed to pull the industry out of its post-recession slump until 2011 when revenue jumped 9.5%, on top of a 17.9% increase during the previous year. In 2012, as the US economy enters a period of stronger growth and export markets bolster demand, industry revenue is expected to record another significant increase of 6.2% to $6.7 billion. However, the severe downturn during the recession has depressed the annualized growth rate to 3.5% over the five years to 2012.
Exports are expected to account for about 11.5% of industry revenue in 2012, up from 6.8% in 2007. According to Bueno, “rising industrial activity in countries that are major US trading partners has resulted in particularly strong export growth during the past five years.” The major export destinations for US-produced actuators and fluid power cylinders are Canada, China, Mexico and Brazil. In particular, the latter three are newly industrialized countries with booming industrial sectors that create substantial demand for related machinery. Over the five years to 2012, the value of industry exports is estimated to increase at an average annual rate of 15.1% to $765.5 million.
After a volatile five-year period, the industry will experience better conditions as the economy enters a period of stronger recovery and demand in the downstream construction sector improves. Along with an expected gain in 2013, IBISWorld forecasts that industry revenue will increase over the five years to 2017. Within particular manufacturing markets, actuators used in construction-related products and processes will regain market share. In general, the Actuator Manufacturing industry is characterized by a low level of concentration. Of the roughly 302 companies in the industry, Danaher Corporation is the largest firm. The low level of concentration reflects the fragmented nature of industry products and markets. Because actuators can be highly technical, firms typically specialize in producing a limited line of actuator products for a limited range of clients. For instance, some companies specialize in producing aerospace-type actuators, while others focus on automotive actuators. Furthermore, some industry firms work under exclusive contracts with major automobile, equipment and machinery manufacturers. As a result, they cannot expand their specialized products into other markets and increase revenue substantially.
For more information visit IBISWorld’s Actuator Manufacturing in the US industry page
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This industry manufactures actuators and fluid-power cylinders. Actuators move or control a mechanism or system through pneumatic, hydraulic or electronic signals, while fluid-power cylinders exclusively use liquid pressure as a power source to achieve the desired movement.
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