Injection Molding Machinery Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

Injection molding machinery manufacturers produce the equipment used by various downstream industries to produce shapes and extrusions made of plastic and similar materials. The recession's negative impact on consumer spending and credit markets led to a lapse in demand for new industry machinery, and it will take injection molding machinery firms several years before returning to prerecession health. As a result of the stagnant domestic market, most firms rely heavily on exports for growth. However, the volatile price of steel, a key input, keeps profit margins contracted for most operators. For these reasons, industry research firm IBISWorld has added a report on the Injection Molding Machinery Manufacturing industry to its growing industry report collection.

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IBISWorld Market Research

IBISWorld Market Research

Customers stalled purchases during the recession, causing revenue to tumble

Los Angeles, CA (PRWEB) February 29, 2012

The Injection Molding Machinery Manufacturing industry buckled under the pressure of the recession, and industry revenue is expected to decrease at an average annual rate of 2.5% to $606.8 million in the five years to 2012, including a 1.1% decline from 2011 to 2012. The Great Recession resulted in a drop in consumers' disposable income, as well as a fall in demand for the products of industry customers (such products include consumer goods, automobiles and medical devices), which led to fewer purchases of injection molding machinery. According to IBISWorld industry analyst Justin Molavi, businesses also pulled back on machinery investments in response to unfavorable economic conditions during the period, instead choosing to wait on the sidelines for the economy to improve. Volatile steel prices further hurt the industry; such input costs ate into profit margins as industry players were unable to pass along cost increases to customers.

Many industry firms turned to export markets to combat domestic revenue and profit declines. Exports, as a percentage of revenue, jumped to 88.6% in 2009 from 78.8% in 2008, as domestic firms increasingly exported their machines to economies that were relatively better off than the US economy. Although this strategy helped many players, it was not enough to combat the revenue declines the industry experienced as a whole. Many customers held on to their machinery for fear of worse economic conditions and chose to repair machines that were not working properly rather than purchase new ones. Some firms in the Injection Molding Machinery Manufacturing industry fared better than others during the downturn. The market shares of the two largest industry players, Husky and Milacron, combine to account for over half of total industry revenue. These players were able to stay afloat by bringing innovation to the market and introducing new products.

The next five years are set to be brighter for the industry. The US economy will gain strength, leading to higher demand for plastic products and ultimately resulting in heightened machinery orders as businesses try and keep pace with demand. Businesses will increasingly invest in machinery amid a more favorable economic outlook and higher demand for goods from their customers. According to Molavi, "Steel prices are also expected to be less volatile, allowing players to expand margins over the next five years." Nonetheless, the industry is not anticipated to completely recover until 2016, when revenue levels will be higher than those experienced before the recession, in 2007. For more information, visit IBISWorld’s Injection Molding Machinery Manufacturing report in the US industry page.

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IBISWorld industry Report Key Topics

This industry manufactures injection molding machinery, which makes products through the process of heating a molding material to a fluid state and injecting it into a mold. This industry does not include rubber-working machinery and equipment.

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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