Because fire extinguishers are required by law in many buildings, demand has stayed strong
Los Angeles, CA (PRWEB) February 21, 2012
The Fire Extinguisher Manufacturing industry did not escape the flames of the economic downturn. Although the industry was riding a wave of high demand because of booming construction activity before the housing bubble burst, conditions worsened as new home construction halted and commercial activity plummeted. Despite the negative conditions over the past few years, revenue declines were less steep than those witnessed within the general manufacturing sector. “The industry's relative resilience stems from its ties to safety regulations that require the ongoing maintenance and update of fire extinguishers in workplaces and other establishments,” says IBISWorld industry analyst Brian Bueno. Furthermore, the industry has been supported by export demand as construction and industrial activity in foreign economies have driven up purchases of industry product.
Products manufactured by the Fire Extinguisher Manufacturing industry are intended for use as a first line of defense to cope with small fires. According to the National Fire Protection Association (NFPA), when used properly, fire extinguishers can save lives and property by extinguishing a small fire or by controlling a fire until additional help arrives. As a result, the NFPA has developed standards that apply to the selection, installation, inspection, maintenance and testing of portable extinguishing equipment. Based on these and other standards, the Occupational Safety and Health Administration places requirements on employers regarding the proper placement and maintenance of fire extinguishing equipment. According to Bueno, regulations also exist at regional levels, administered by state and local governments.
Demand for fire extinguishers will increase substantially from 2013 onward as a result of the long-awaited revival of the US construction sector. Regulations on the presence of fire equipment and rising export demand will also continue to support sales of industry products. The industry is characterized by a medium level of concentration, which has been increasing over the past five years. Industry firms specializing in certain types of extinguishers for particular markets allows for some fragmentation and limits the possibility of high concentration. Nevertheless, contracts with public agencies also limit opportunities for new entrants and increase concentration. Industry exit and consolidation has contributed to the industry’s growing concentration. In 2010, for example, major company United Technologies Corporation enhanced its North American market presence with the acquisition of General Electric's security business, which includes fire-safety products. Other major players include Amerex Corporation and Jarden Corporation. For more information, visit IBISWorld’s Fire Extinguisher Manufacturing report in the US industry page.
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IBISWorld industry Report Key Topics
This industry manufactures fire extinguishers that are used to control small fires, often in emergency situations. The industry excludes professional fire equipment used by fire fighters.
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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