Jewelry Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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Beginning in the early 2000s, a rift between US jewelry manufacturers' slumping revenue and buoyant retail sales began to grow after major jewelry manufacturers began shifting operations to China, India, Israel and the Middle East to save on input and labor costs. Because of this offshoring and outsourcing trend, imports and exports have accounted for a growing proportion of the industry since 2007. As a result, rising competition and import penetration are cutting into industry profit, as are increasing prices for base materials. Fortunately, renewed incomes will keep the industry from declining significantly over the five years to 2017. For these reasons, industry research firm IBISWorld has added a report on the Jewelry Manufacturing industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

High prices of input materials and rising import penetration have hampered revenue

Following a dismal few years during the recession, the Jewelry Manufacturing industry is anticipated to continue the recovery it began in 2010. Industry revenue is expected to increase 2.4% and total an estimated $8.9 billion during 2012, as consumer spending levels increase with higher disposable incomes and renewed confidence in the economy. IBISWorld industry analyst Josh McBee says demand conditions have been unfavorable in the past five years: The Great Recession caused consumer spending to plummet, especially on luxury items like jewelry. As such, revenue is expected to decline at an annualized rate of 2.9% during the five years to 2012.

High prices of input materials and rising import penetration have also adversely affected industry players over the past five years. During the recession, many investors flocked to gold and silver as safe commodity investments, causing the prices of those metals to spike, says McBee. High input prices have significantly hurt profit margins for the Jewelry Manufacturing industry because already-low demand for jewelry limited the ability of operators to pass on added costs to customers. Additionally, rising manufacturing capabilities in Asia have led to increased jewelry production overseas. Since these countries have lower labor and overhead costs, they offer lower prices on comparable products and erode domestic industry sales. Such rising competition has placed significant pricing pressures on US manufacturers. To maintain demand in the contracting industry, industry players have been forced to further reduce their markup and incur lower profit. With falling margins, industry players have merged, consolidated or exited the industry.

The industry is characterized by a large number of small operators, indicating a low level of industry concentration. Tiffany & Co is the industry’s largest player. US firms have been diverting manufacturing offshore and focusing local operations on distribution and marketing. As a result of this low concentration, the industry is highly price competitive, and local firms compete with low-priced Asian imports. This industry is projected to experience slight growth as economic conditions continue to improve. As consumers regain job security and higher income, demand for jewelry will return to growth. The pricing battle with imports is anticipated to strengthen and limit the industry's growth in the long run. Over the five years to 2017, industry revenue is forecast to decline. For more information, visit IBISWorld’s Jewelry Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

Operators in this industry manufacture jewelry or silverware using precious or semi-precious metals and stones. Costume jewelry manufacturers, specialty coin producers and lapidaries (artisans who form stones, minerals and other durable materials into decorative items like cameos and engraved gems) are also included in this industry.

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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