Plastic Sewer and Storm Drainpipe Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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Plastic sewer and storm drainpipe manufacturers produce high-grade, high-performance plastic pipes for many industries and applications. Similar to other manufacturing industries, demand for the Plastic Sewer and Storm Drainpipe Manufacturing industry has been volatile over the five years to 2012. As the housing market collapsed, demand declined for many downstream users as utility construction activities for housing starts stalled and slowed purchases. In the next five years, an anticipated increase in the demand for sewer line and storm drain construction is expected to boost utility infrastructure construction and maintenance investment. Also, IBISWorld forecasts that a recovery in the housing market, improvements in state and local government investment and increased private investment will support a healthy recovery for the industry. For these reasons, industry research firm IBISWorld has added a report on the Plastic Sewer and Storm Drainpipe Manufacturing industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

The collapsing housing market slashed demand for drainage construction and products

Plastic sewer and storm drainpipe manufacturers produce high-grade, high-performance plastic pipes for many industries and applications. End users include water-supply, sewer-line and storm-drain system contractors. Similar to other manufacturing industries, demand for the Plastic Sewer and Storm Drainpipe Manufacturing industry has been volatile over the five years to 2012. “As the housing market collapsed, demand declined for many downstream users as utility construction activities for housing starts stalled and slowed purchases,” says IBISWorld industry analyst Deonta Smith. “This decline hindered revenue growth for plastic sewer and storm drainpipe manufacturers.” As such, industry revenue has declined at an estimated annualized rate of 1.1% to $1.4 billion over the five years to 2012. In the past couple years, however, the economy has slowly begun to recover and housing starts have increased. As a result, demand for end users like sewer contractors also grew, improving demand for industry-related products.

In 2012, IBISWorld estimates there are 43 establishments operating in the industry. Over the past five years, the number of industry operators has contracted at an average annual rate of 2.9%, with larger declines of 5.9% in 2008 and 4.2% in 2009. These two years of decline were primarily due to the decrease in housing starts, which adversely affected demand for sewer and storm drainpipe construction. “In light of future uncertainty, keeping high levels of production became a major concern as municipalities shifted their priorities in the wake of the economic downturn,” says Smith. In reaction to fewer available sewer and storm drain construction projects, some firms expanded into foreign markets while others merged (e.g. J-M Manufacturing and PW Eagle). Within the Plastic Sewer and Storm Drainpipe Manufacturing industry, there is a high level of concentration among firms, indicating relatively high levels of competition since the largest suppliers dominate a limited number of downstream markets. At the same time, external competition, mainly from cheaper imports, has been increasing imported pipes' share of domestic demand. Competition is expected to increase as less capitalized firms become acquisition targets for the major companies or exit the industry completely. Current major players include JM Eagle (formed by the aforementioned merger), Advanced Drainage Systems and North American Pipe Corporation.

In the next five years, an anticipated increase in the demand for sewer line and storm drain construction is expected to boost utility infrastructure construction and maintenance investment. IBISWorld forecasts that a recovery in the housing market, improvements in state and local government investment and increased private investment will support a healthy recovery for the industry. For more information, visit IBISWorld’s Plastic Sewer and Storm Drainpipe Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

Establishments in this industry primarily convert plastic resins into rigid plastic pipes and pipe fittings for well casing, irrigation, plumbing, storm drains and sewers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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