Demand from downstream markets will recover, but import competition threatens the industry
Los Angeles, CA (PRWEB) February 21, 2013
Over the past five years, the Power Circuit Breaker Manufacturing industry has suffered in line with its key downstream industries. As activity in construction, manufacturing and industrial production faltered due to the recession in the early part of the period, demand for newly manufactured power circuit breakers declined substantially. “Both commercial and residential construction suffered, while industrial production slowed significantly, leading to less activity within the mining, manufacturing, electric and gas industries,” says IBISWorld industry analyst Antonio Danova. Because of this slow activity, demand dropped and IBISWorld expects revenue to fall at an annualized rate of 3.0% to roughly $1.8 billion over the five years to 2013.
Nonetheless, economic conditions have improved and activity within these key downstream markets has grown since the end of the recession. These trends have helped turn the Power Circuit Breaker Manufacturing industry back toward growth, including an expected increase of 4.3% during 2013. Additionally, the potential for greater losses was mitigated by the growing export market. Over the five years to 2013, total exports have grown 1.5% per year on average to roughly $796.4 million. On the other hand, growing competition from imports has hindered growth in recent years and will continue to do so in the long run. “This growing competition has led many firms to shift production overseas, where they can produce goods at cheaper costs in order to provide circuit breakers to customers at more competitive prices,” adds Danova. The industry has a low level of market share concentration; however, concentration has increased slightly in the past five years, as many companies in the industry have undergone merger and acquisition activity. For example, major player ABB Ltd. most recently acquired Thomas and Betts, a designer and manufacturer of electrical and communication market components, in 2012.
Over the next five years, the industry will be backed by greater revenue and profitability growth, but will still face rising competition from foreign-made goods. Downstream markets will continue to improve output, which will lead to greater demand for newly manufactured circuit breakers. Still, many firms will continue to eliminate peripheral labor and move operations overseas in order to maintain profitability. IBISWorld forecasts that industry revenue will grow over the five years to 2018. For more information, visit IBISWorld’s Power Circuit Breaker Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures power circuit breakers, which protect electrical circuits from anomalies in power supply, including overflooding or short circuiting. Various kinds of circuit breakers provide differing dimensions, depending on the user's need. Industry products are widely used by customers ranging from corporate enterprises to households. This industry does not manufacture fuses.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.