Manufacturers move overseas and take revenue with them
London, United Kingdom (PRWEB) August 28, 2012
The Communication Equipment Manufacturing industry is on a downward slide as cost pressures force many manufacturing operations offshore. A fast rate of technological advance and the convergence of internet and communications industries drove investment in communications infrastructure and equipment. However, this had limited benefits for domestic manufacturers due to strong import competition. According to IBISWorld industry analyst Aries Nuguid, “technology convergence is raising competition for local manufacturers that operate in a highly globalised industry”. Industry revenue is expected to have fallen by an annualised 8.3% over the five years through 2012-13. In 2012-13, revenue is forecast to fall by 12.2% to £2.71 billion as sovereign debt issues in Europe constrain demand.
The conversion of TV and radio broadcasting from analog to digital is largely complete. As a result, sales related to this market segment are expected to be weaker over the next five years. In contrast, public and private investment in next-generation broadband infrastructure will boost demand for communication equipment. Nuguid adds, “the trend for companies to shift production to low-cost economies will persist”. This will cause a continued contraction for the industry through to 2017-18.
The Communication Equipment Manufacturing industry is highly concentrated with major players dominating the industry. The largest manufacturers tend to service large telecommunication and cable service provides. The four largest industry players account for an estimated 77% of industry revenue. Market share concentration is expected to continue to increase over the next five years. Companies that have access to capital (for research and development, production capacity, marketing), strong brand names and global distribution networks will acquire smaller players. The convergence of telecommunications, IT and consumer electronic goods will also drive consolidation within the industry.
Major companies include Pace and Amstrad.
For more information on the Communication Equipment Manufacturing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Firms in this industry manufacture telecommunications and broadcasting equipment. Products include telephones (fixed-line, cordless and mobile); data communications equipment; pagers; modems; burglar and fire alarm systems; transmitting and receiving antenna, radio and TV transmitters; and other broadcasting equipment.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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