International trade plays a large role, but UK firms are expected to lose global market share
London, United Kingdom (PRWEB) June 25, 2013
The Lifting and Handling Equipment Manufacturing industry has faced challenging conditions over the past five years because weak domestic demand, rising import penetration and falling exports have all reduced demand for the products manufactured by industry participants. As a result, industry revenue is expected to decline at a compound annual rate of 4.3% over the five years through 2013-14. According to IBISWorld industry analyst Iyman Uvais, “Domestic demand contracted when industrial production and construction activity fell sharply at the start of the period and has remained relatively weak since then.” Demand from other businesses for lifting and handling equipment dampened as they faced challenging conditions. In 2013-14, industry revenue is forecast to increase by 2.2% to £2.9 billion as domestic conditions improve and push up demand for lifting and handling equipment. Exports are also projected to rise and contribute to growth. Nevertheless, cautious business spending and limited government expenditure are anticipated to keep non-residential construction activity sluggish. This, coupled with rising import penetration, will limit industry growth. Industry profitability is expected to increase marginally over the five-year period.
The Lifting and Handling Equipment Manufacturing industry is characterised by a large number of small players specialising in a narrow range of products. However, market share concentration varies across products segments. “For instance, the level of market share concentration is very high in segments, such as in the lift trucks and the lifts and escalators segments,” added Uvais. The largest player is estimated to be Nacco Materials Handling Group Ltd. Large foreign companies dominate the global markets for some industry products, including forklift trucks and people-moving equipment like elevators and lifts. International trade has a significant influence on revenue, since exports generate nearly 60% of industry revenue and imports satisfy a similarly large share of domestic demand.
Industry revenue is forecast to continue to rise over the five years through 2018-19, as improving economic conditions stimulate demand for lifting and handling equipment. Industrial production and construction activity are expected to rise, which augurs well for the industry. Demand from other businesses is also likely to improve, since a brighter economic background will prompt business to expand their capital expenditure budgets. However, industry growth will be limited as import penetration rises further and austerity measures remain in place. Although exports are projected to rise, operators will continue to lose global market share, which will also constrain industry growth. Industry profitability is expected to improve as activity levels rise and unprofitable players exit the industry.
For more information on the Lifting and Handling 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 lifting and handling equipment. This includes hand-operated or power-driven lifting, handling, loading or unloading machinery. The manufacture of conveyors, lifts, escalators, moving walkways and specialised parts for lifting and handling equipment is also included. The manufacture of continuous-action elevators, floating cranes and mechanical shovels is not covered by this industry.
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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