Productivity improvements made during the recession will help boost profit growth
Los Angeles, CA (PRWEB) July 23, 2012
The Commercial Shelving Manufacturing industry suffered severe revenue declines from 2007 through 2009. “Although the industry began its recovery in 2010, growth has been slow because major markets across the globe remain weak and US demand for industry products have been increasingly satisfied by imports by manufacturers in countries like China, Mexico and Taiwan,” says IBISWorld industry analyst Brian Bueno. In the five years to 2012, IBISWorld estimates revenue will decline 8.0% per year on average to $744.1 million. From 2011 to 2012, rising retail demand and improvements in office and commercial construction markets are helping support some of the industry's slow recovery and will push revenue up 2.0% over the year.
Over the past five years, more than 50 companies exited the Commercial Shelving Manufacturing industry, moved all operations abroad or were acquired by competitors. In 2012, about 129 commercial shelving manufacturers remain operating within the United States, representing an average annual decline of 6.5% since 2007. Moreover, as companies struggled to remain afloat, more than 2,530 employees were laid off from 2007 to 2012. “Although such decline may point to a dying industry, surviving firms are expected to help support profit growth over the next five years because of previous improvements made in productivity and cost reductions,” says Bueno. “Therefore, downsizing has generally improved the cost structure of the industry and limited the remaining firms to those with the strongest and leanest production processes.” Steelcase and Herman Miller currently lead the industry, but they do not generate enough revenue exclusively from the sale of US manufactured shelving to capture a significant share of the market. While commercial shelving products among large companies such as Steelcase represent a small portion of overall revenue, companies that specialize in commercial shelving tend to be small niche players, typically operating one establishment per company and serving customers at a regional level. The industry is highly fragmented; the majority of manufacturers are small to medium-size manufacturers.
Despite imports inhibiting domestic industry growth, rising demand will be beneficial to the industry, and the operators capable of satisfying emerging trends and remaining competitive against US and foreign companies. Rising retail, service and industrial sector activity will spur new commercial construction, creating demand for new commercial shelving space in office buildings, stores and industrial facilities. For more information, visit IBISWorld’s Commercial Shelving Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes establishments primarily engaged in manufacturing commercial shelving made out of materials other than wood. The products are made on a stock or custom basis and may be assembled or unassembled (i.e. knockdown).
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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