Electric Surge Protection Device Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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While the most visible products of the Electric Surge Protection Device Manufacturing industry are the power strips commonly used in homes and offices, the real breadwinners for the industry are the large point-of-source surge protectors installed during a home or building's construction. As such, the subprime crisis and construction crash during the recession led to sharply falling revenue for the industry. At the same time, however, strong export growth counteracted the domestic woes, yielding almost no change in revenue over the past five years. As the economic recovery continues and construction rebuilds, the industry is expected to pick up the pieces as well. For these reasons, industry research firm IBISWorld has added a report on the Electric Surge Protection Device Manufacturing industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

With close ties to construction, the industry was hit hard by the recession

Key downstream factors have combined to offset growth for the Electric Surge Protection Device Manufacturing industry during the five years to 2012. On one hand, says IBISWorld industry analyst Josh McBee, “Demand from overseas markets has remained relatively stable despite a double-digit decline in 2009 on the back of worldwide financial turmoil.” On the other hand, slumping activity in key domestic construction industries has mitigated growth opportunities in the United States. As a result of these opposing forces, industry revenue is expected to remain flat during the period, averaging 0.0% growth per year.

Residential and non-residential construction demand form the basis for most sales of surge protectors included in this industry. While the "power strips" with which most consumers are familiar are included in this industry, these products are estimated to form a minority of overall revenue. Instead, the industrial-type surge protectors buried within walls and mounted next to fuse boxes and other electrical controls dominate this industry. While some households may own a power strip featuring surge protection for their computers and other electronics, “almost every home and office contain at least one if not multiple industrial-grade surge protectors as part of the structure's overall electrical infrastructure,” says McBee. The top four companies in the Electric Surge Protection Device Manufacturing industry, Eaton Corporation, Trippe Manufacturing Company, Schneider Electric SA and Advanced Protection Technologies, combine to hold almost three-quarters of industry revenue, making the industry highly concentrated.

Given the reliance that sales of surge protectors have on downstream construction activity, revenue is estimated to move largely in line with construction activity. After facing serious declines during the past five years, construction markets are expected to recover slowly during 2012. In addition, export demand from emerging economies is expected to drive international sales of industry products. As a result, IBISWorld expects industry revenue to grow 2.3% during 2012 and total an estimated $172.4 million. The expected recovery in construction markets will likely continue through the next five years as well. As unemployment falls, access to credit will return and investments into new construction activity will grow, leading demand for related surge protection to rise as well. Also, the continued implementation of what has become known as the "smart grid" will encourage the standardization of surge protection equipment. In light of these projections, industry revenue is forecast to continue growing through 2017. For more information, visit IBISWorld’s Electric Surge Protection Device Manufacturing report in the US industry page.

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IBISWorld industry Report Key Topics

This industry manufactures surge protection devices. A surge protector (or surge suppressor) is an appliance designed to protect electrical devices from voltage spikes.

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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Gavin Smith
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