Development of new products will help industry revenue recover from the downturn
Los Angeles, CA (PRWEB) June 15, 2012
The Laboratory Casework Manufacturing industry experienced a wobbly past five years. This industry manufactures laboratory furniture, including cabinets, cases, benches, tables and stools. As the economy started showing signs of weakness and the United States retreated into a recession, demand for industry products fell and revenue declined. When revenue for businesses and laboratories fell, they could not justify investing in new laboratory furniture. According to IBISWorld industry analyst Nima Samadi, “the industry's revenue is expected to decline at an average annual rate of 4.4% to $1.2 billion in the five years to 2012, however revenue is forecast to grow 4.5% in 2012.”
Research and development (R&D) spending in the Laboratory Casework Manufacturing industry is tied to total corporate revenue and as a result it moves closely with the overall economy. As revenue tightened during the recession, businesses cut back on funding research to develop new products. Currently the major players for this industry are Thermo Fisher Scientific and Kewaunee Scientific Corporation. “Market share concentration is estimated to be low in the industry,” adds Samadi, with the number of companies expected to remain relatively flat during the five years to 2012, and new entrants projected to be marginal during the coming five years.
Over the five years to 2017, the industry is projected to grow at a faster rate as downstream companies invest in new products again - in turn, increasing their R&D expenses. One of the primary impetuses of that growth will be an increase in demand for US laboratory casework products in emerging nations. Strong growth in research capabilities among private, government and educational institutions in Asia (including the Middle East) and South America will likely drive growth in exports. For more information, visit IBISWorld’s Laboratory Casework Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
Firms in this industry manufacture laboratory furniture, including cabinets, cases, benches, tables and stools. This industry excludes dental laboratory furniture.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.