Recovery in downstream construction and automotive markets will boost revenue
Los Angeles, CA (PRWEB) May 21, 2012
The Security Glass Manufacturing industry manufactures products designed to resist three types of attacks: physical, ballistic and blast attacks. However, the industry was unable to withstand the pressures of the economic downturn. The market for security glass in the United States is mature and largely moves in line with US residential and commercial construction and automotive markets. The markets, however, have been suppressed over the past five years due to general weakness in the US economy following the Great Recession. Industry revenue is projected to decline at an average annual rate of 1.6% to $609.2 million, despite growth in 2012. The industry is moderately concentrated among its three largest players – Guardian Industries Corp., Asahi Glass Company Limited and Compagnie de Saint-Gobain. However, US-based facilities have been unable to capture some of the worldwide demand for security glass products, limiting the domestic industry's growth, says IBISWorld industry analyst Brian Bueno. Imports currently satisfy about 18.1% of the US demand for security glass products. Moreover, the vastness of automobile manufacturing and assembly that is performed abroad has generally favored foreign security glass producers. Therefore, the automobile market rebound in 2010 did not mitigate the effects of weak construction demand, allowing revenue to continue falling over the year.
The Security Glass Manufacturing industry has a medium level of concentration. Over the past decade, concentration has increased due to industry restructuring and merger activity. In addition, multiple smaller firms exited or were acquired by larger companies during the economic crisis, although the net effect on industry enterprises was minimal, continues Bueno. The industry comprises small glass manufacturers with security glass products targeted at niche applications in various market segments. Industry concentration is expected to continue an upward trend in the next five years. This is the result of an attempt to deal with increasing international competition for domestic customers and rising input costs.
Over the next five years, further economic improvement will drive down unemployment, increase consumer and business spending and create robust demand conditions for new office buildings, banks, sports centers and other structures that typically contain security glass. Furthermore, rising spending among government agencies as tax revenue increases will promote the construction of new municipal buildings. Lastly, further growth in demand for automobiles on a global scale will increase purchases of security glass used in car manufacturing. These factors will drive up demand for security glass. However, continued competition from foreign manufacturing facilities and from substitute products will limit growth. IBISWorld forecasts industry revenue will grow over the five years to 2017. For more information, visit IBISWorld’s Security Glass Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures reinforced architectural and automotive glass (i.e. security glass). These products are primarily used in building construction, maintenance and repair, and in automobiles. The processes to manufacture these products include glass laminating, tempering, thermal and chemical strengthening, annealing, insulating and other aesthetic processing.
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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