The number of firms in the industry will continue to fall, and weak revenue growth will reflect the declining life cycle stage of the industry
Los Angeles, CA (PRWEB) July 08, 2012
The Woodworking Machinery Manufacturing industry is expected to fare slightly better in 2012 than during most of the previous five years. However, that is not saying much. According to IBISWorld industry analyst Brian Bueno, “in 2012, revenue is expected to grow only 0.4% to $996.5 million, capping an annualized decline of 4.1% since 2007. Domestic demand from carpentry contractors and wood product manufacturers is expected to increase after continued weakness in construction markets. However, the industry will not experience the robust growth it witnessed in the mid-1990s, because production of woodworking machinery continues to move overseas.”
Bueno states that “overall, imports currently account for nearly half of the domestic demand for industry products, limiting US manufacturers' ability to regain the market. US bilateral trade in the Woodworking Machinery Manufacturing industry has been historically dominated by five foreign sources: Canada, China, Germany, Taiwan and Mexico. The number of companies operating in this industry is expected to fall at an average annual rate of 2.8% over the five years to 2012, to total 240. This trend is expected to continue over the five years to 2017, as companies continue to move facilities to where production costs are lower.”
This industry has a low level of market share concentration. The top four firms operating in the Woodworking Machinery Manufacturing Industry account for less than 30% of revenue in 2012. Mergers and acquisitions have become more common as the industry has moved further into the declining stage of its life cycle. As a result, it is expected that the top four firms will gain market share over the next five years. The only player with significant market share is Stanley Black & Decker
Over the five years to 2017, industry revenue is expected to experience marginal growth supported by stronger economic conditions in the post-recession world. Consumer confidence and per capita disposable income are expected to recover over the next five years, and IBISWorld forecasts that this factor will boost demand from households for some industry products. Downstream industries, such as wood product manufacturers, carpentry contractors and residential and non-residential construction industries will continue to be the major markets for the industry's products over the next five years. However, the number of firms in the industry will continue to fall, and weak revenue growth will reflect the declining life cycle stage of the industry.
For more information visit IBISWorld’s Woodworking Machinery Manufacturing in the US industry page
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IBISWorld industry Report Key Topics
Firms in this industry manufacture sawmill and woodworking machinery (except handheld). Manufactured machinery includes circular and band sawing equipment, planing machinery, sanding machinery, band saws, circular saws, jigsaws, jointers, lathes, mortises, power-driven bench and table saws and other woodworking machines.
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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