Revived demand from manufacturers and the government will aid growth
Los Angeles, CA (PRWEB) April 30, 2012
Revenue for the Respiratory Protection Equipment Manufacturing industry is expected to grow at an annualized rate of 1.3% to $1.1 billion in the five years to 2012. According to industry analyst Josh McBee, “during the recession, industry revenue fell due to a decline in the industrial production index (IPI), which measures the output from the mining, manufacturing, electric and gas industries.” The manufacturing and construction sectors, which are two of the industry's largest markets, were heavily affected by the recession. Luckily, industry operators managed to avoid significant declines due to its additional reliance on demand from the government and utilities sector. In 2012, the industrial production index is expected to rise 3.1%, driving industry growth of 5.2% during the year.
Many occupations in downstream industries require respiratory protection equipment because of the nature of the job. Mining operators, manufacturing companies and government agencies provide employees with the industry's products to reduce the incidence of injury associated with inhaling toxic chemicals and airborne particulates. According to McBee, “the demand from some of these markets, including the Department of Defense, was relatively resilient to the recession.” Nevertheless, the industry has suffered from an increase in imports. Furthermore, the price of plastic materials and resin has increased at an average of 3.9% annually in the five years to 2012, causing production costs to rise.
IBISWorld estimates that the number of firms operating in the industry has declined at an average of 2.3% annually to 16 in the five years to 2012. The Respiratory Protection Equipment Manufacturing industry exhibits a high level of market share concentration. The top three companies are expected to account for all but a marginal share of total industry revenue. Consolidation has occurred in the wake of acquisitions during the past five years, reflecting the industry's maturity in its life cycle. For example, Honeywell acquired Sperian in 2010, and 3M acquired Aearo in 2008. Respiratory protection equipment manufacturers will benefit from rising demand during the next five years as the economy and industrial production return to growth.
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This industry manufactures respiratory protection equipment, including respirators, masks and accessories, gas masks, respiration air supplying self-contained breathing apparatus and accessories, respirator filters and accessories, protective films, and powered air-purifying respirator systems (PAPRs) and accessories. The industry does not include sleep and breathing aids for consumers with medical conditions, since these products are not considered protection equipment.
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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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