The industry weathered the recession, with revenue falling only slightly
Los Angeles, CA (PRWEB) July 06, 2012
The Refrigerated Storage industry has fared relatively well over the past five years. During this time, revenue grew steadily, increasing an average of 1.7% per year to $5.9 billion. Strong demand for food and pharmaceutical products supported growth. The recession had a minimal impact on the industry, with revenue declining just 1.6% in 2009. Demand from the storage of frozen foods, fruit, vegetables and pharmaceutical goods stayed relatively strong, and revenue only fell in 2009 as consumer spending and total trade value fell. “As consumer spending and demand continue to grow,” says IBISWorld industry analyst Lauren Setar, “industry revenue is expected to grow 2.5% in 2012.”
Along with relatively steady revenue growth, the number of establishments in the industry is expected to remain stable, growing at an average annual rate of just 0.6% over the five years to 2012. Increased capital requirements made it more difficult for new entrants to enter the industry. Moreover, says Setar industry firms have undergone a large amount of merger and acquisition activity, which has raised the industry's concentration over the past five years. The only major player in the Refrigerated Storage industry, Americold Logistics LLC, accounts for less than a fifth of industry revenue. Most firms operate regionally, and the industry has a low level of concentration.
Over the past five years, capital investment in the industry increased to improve efficiency and lower costs. Operators invested in new tracking and monitoring systems and in larger warehouses with complex environmental management systems. As the US economy continues to recover from the recession and credit becomes more freely available, operators are expected to continue to invest in new technologies and additional services. Revenue is forecast to continue to grow over the next five years, supported by an increase in refrigerated storage capacity to help industry firms lower operating costs. During the five years to 2017, the industry will benefit from steady improvements in per capita disposable income and growth in the total trade value. Increases in demand and ongoing efficiency improvements are expected to bolster average industry profit margins. For more information, visit IBISWorld’s Refrigerated Storage in the US industry report page.
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IBISWorld industry Report Key Topics
Firms in this industry operate refrigerated warehousing and storage facilities. Temperature-controlled services include blast freezing and tempering. Establishments primarily engaged in storage of furs for trade are included in this industry. These furs are used as raw materials for the manufacturing of garments and personal accessories like bags and shoes.
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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