Los Angeles, CA (PRWEB) June 29, 2012
The Urinal Manufacturing industry has endured a difficult five years. The fate of the industry rests largely in the hands of the private, non-residential construction sector. “With the onset of the recession, activity from commercial and industrial construction firms choked as funding for these projects dwindled in light of limited access to financing,” says IBISWorld analyst Antonio Danova. “The general lag in the construction sector behind the pace of the US economy permeated throughout the Urinal Manufacturing industry, with losses of 11.3% and 8.0% not felt until 2009 and 2010, respectively.” Nevertheless, the construction sector experienced a swift boost in activity in recent years to the benefit of the industry, creating expected growth of 1.8% during 2012. Still, the effects of the recession are weighing heavily on the industry and recent growth is not enough to mitigate substantial losses. Thus, IBISWorld expects industry revenue to fall at an annualized rate of 2.3% to about $367.7 million in the five years to 2012.
The Urinal Manufacturing industry has benefited from significant technological advancements and widening use of high-efficiency, sanitary urinal models. Waterless, or water-free, urinals have been increasingly replacing existing urinals that use a water flush. According to Danova, “Many cities throughout the country have begun offering tax credits for firms that incorporate high-efficiency models into their building plans.” As demand for these urinal models increases over the next five years, industry profitability will be enhanced because these products incorporate technology that allows for marked-up pricing.
Over the next five years, the industry will benefit from the rebound in non-residential construction; though the expected lag associated with the sector may hold back accelerated industry revenue growth until 2014 or 2015. Despite expected growth, though, the industry may experience some adverse effects from higher interest rates and a growing import market. For example, higher interest rates may drive up the cost of funding big-ticket construction projects, a trend that may truncate the need for urinals and other building fixtures. Additionally, a rising import market will heighten competition within the industry and may take away from the growth potential of domestic firms. The industry has a moderate to low level of concentration. Many of the firms have a small-scale nature and serve a local market, while others are large-scale, vertically integrated operators that cover the entire supply chain, from manufacturing to retail. For example, major player American Standard Brands distributes its products throughout the United States using a network of wholesalers, retailers and specialty merchants. Other major companies include Toto USA Inc. and Kohler Co. For more information, visit IBISWorld’s Urinal Manufacturing report in the US industry page.
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IBISWorld industry Report Key Topics
This industry designs and manufactures urinals, including urinals with a manual water flush, automatic flush or urinals that are waterless. Typically made of either porcelain or vitreous China, urinals are found primarily in non-residential structures, such as office buildings, hotels, schools, factories and other commercial areas. This industry does not include toilets.
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Globalization & Trade
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