Snowy weather patterns and new products will drive demand for snowplows
Los Angeles, CA (PRWEB) April 24, 2012
In the five years to 2012, the Snowplow Manufacturing industry's revenue is expected to grow at an average annual rate of 1.3% to $421.8 million. Despite producing equipment that is mainly seasonal, the industry has been helped by steady weather patterns in cold climate areas. According to industry analyst Tony Danova, “high precipitation levels led to high amounts of snowfall throughout the Northeast, East, Midwest and Western United States, increasing the need for snowplows and other snow control products.” The recession hampered industry revenue in 2009, but it also created pent-up consumer demand for new snowplows. During this time, many delayed replacement because of lower income, higher unemployment and limited access to financing. As the economy gradually improved during 2010 and 2011, that pent-up demand was unleashed and revenue grew 9.6% and 18.3%, respectively. IBISWorld expects revenue to grow 11.1% more in 2012 due to steady weather patterns and continually improving economic conditions.
The Snowplow Manufacturing industry exhibits high levels of international trade. Imports and exports have increased at double-digit rates on an annualized basis during the five years to 2012. During that time, export sales have nearly doubled as a share of revenue and now account for more than half of all industry sales. Traditionally, the top export destinations have been Canada and Scandinavian countries like Sweden and Norway, but China has emerged as a hot destination during the period. Despite overall growth, industry operators faced immense pressure from rising commodity prices. Soaring steel prices forced manufacturing firms to change their operational strategies to stabilize their variable costs. According to Danova, “many firms cut costs by eliminating some excess labor and by shutting down inefficient manufacturing plants.” As such, industry employment is expected to fall at an annualized rate of 3.1% to about 725 workers in 2012.
During the five years to 2017, the industry will likely continue to grow at a steady pace thanks to sustained manufacturing efficiency and a commitment to product innovation. As far as product innovation, the largest firms have already introduced new technologies such as Meyer's hands-free plowing system or Northern Star's three-step hitching system. Over the next five years, firms will look to improve durability, reliability and make snowplows that more easily attach to a wider variety of vehicles. All of these trends will help spur modest average growth over the five years to 2017.
For more information visit IBISWorld’s Snowplow Manufacturing in the US industry page
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This industry manufactures snowplows and spreaders, which are devices mounted on vehicles to remove snow and ice from outdoor surfaces. Products vary based on intended purpose and vehicle size. Most companies offer light-duty, heavy-duty and utility vehicle plows. The industry does not include lawn- and garden-type snow-moving equipment.
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Products & Services
Globalization & Trade
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