The industry was hit hard when consumer sentiment fell, as industry products are big-ticket items
Los Angeles, CA (PRWEB) September 07, 2012
Over the five years to 2012, revenue for the Stair Lift Manufacturing industry is expected to fall at an annualized rate of 2.4% to roughly $60.1 million. The industry suffered primarily from the effects of increased unemployment and decreased consumer disposable income brought on by the economic downturn in 2008 and 2009. During this period, industry operators endured a severe lack of demand for newly manufactured stair lifts as consumers passed on health coverage and became generally unwilling to spend on big-ticket items because of a lack of income. As a result, the industry endured losses of 4.3% and 12.8% during 2008 and 2009, respectively. “Nonetheless, the industry has been somewhat resurgent in recent years in light of a generally improving economy, the continued aging of the American population and increased funding for Medicare and Medicaid as well as an increase in private health insurance policies,” said IBISWorld industry analyst Tony Danova. These factors have led to steady growth in industry revenue after the economic downturn, including expected growth of 2.4% during 2012.
One of the fastest growing demographics in the United States is the senior population, adults aged 65 and older. This growth is due to the Baby Boomer population, those citizens born between 1946 and 1964. Over the five years to 2012, the number of people who fall under this age bracket has grown at an annualized rate of 2.4%. With a growing population of seniors, the level of health insurance coverage has grown over the past five years as well. Many of these citizens are candidates for Medicare and Medicaid programs, and, as a result, funding for such programs has grown roughly 5.5% per year on average over the past five years as well. According to Danova, with a greater influx of the population in a key downstream market and more widespread coverage, demand for stair lifts has trended upward steadily since the recession and this growth should continue into the next five years. Over the next five years, the industry should be lifted up toward steady growth. With more widespread health insurance coverage and a greater population level in a key downstream market, industry operators should benefit significantly. This boost in demand will give way for opportunities for more firms to enter the industry. Over the five years to 2017, IBISWorld expects the number of industry firms to also grow in line with revenue.
The Stair Lift Manufacturing industry has a moderate level of market share concentration. Collectively, the top four industry manufacturers make up nearly 60.0% of industry revenue in 2012. Over the past five years, industry concentration has increased as top firms expand domestic operations and foreign-based operators expand to the United States. The rest of the industry is fragmented and comprised of small and regional operators that serve local markets. For more information, visit IBISWorld’s Stair Lift Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry comprises establishments that manufacture stair lifts (i.e. chair lifts) and their associated parts for use in commercial and residential buildings.
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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