Operators will expand production capacity to meet heightened downstream demand
New York, NY (PRWEB) March 12, 2014
Over the five years to 2014, revenue for the Thermocouple Manufacturing industry is expected to trend higher. Thermocouples are devices that consist of two different conductors (usually metal alloys), which produce a voltage proportional to a temperature difference between either end of the pair of conductors. According to IBISWorld Industry Analyst Brandon Ruiz, “They are used in a variety of industrial processes, such as automotive and aerospace manufacturing, in addition to being used as a key component in many household appliances.” Because thermocouples are essential components of many industrial manufacturing processes, industry revenue tends to ebb and flow with fluctuations in private investment in industrial equipment, which is expected to surge over the five years to 2014. As a result, IBISWorld expects industry revenue to grow at an annualized rate of 4.3% to $709.3 million over the five-year period, lifted by an estimated 0.7% increase in 2014.
Profit for the Thermocouple Manufacturing industry is expected to trend higher, however, rising input costs, particularly nickel, is expected to hamper growth prospects. As the world price of nickel increases, industry operators will either decide to absorb additional costs themselves or pass along costs to downstream markets in the form of higher selling prices. Unfortunately, higher selling prices will likely lead to lower demand. Despite this challenge, industry operators are expected to expand production capacity to meet heightened downstream demand. To this end, the number of industry establishments is expected to grow at an annualized rate of 0.5% to 2,077 over the five years to 2014.
Over the five years to 2019, the Thermocouple Manufacturing industry is expected to benefit from rising demand abroad. “As emerging markets become more industrialized and downstream markets abroad expand, demand for temperature measuring devices, such as thermocouples, are expected trend higher,” says Ruiz. However this growth is not expected to come without its challenges. Because international trade remains an integral component of the industry, an appreciation of the US dollar relative to other currencies is expected to hamper export growth, a key industry revenue stream. Nevertheless, industry revenue is expected to increase over the five years to 2019.
IBISWorld estimates that the industry has a low level of industry concentration. Industry operators have also been facing growing competition from imported products from abroad, especially for general-purpose thermocouples. With a resurgence in US manufacturing, accelerated industrial activity and greater household spending, firms in this industry are experiencing a high level of demand for their products, especially for advanced and efficient temperature sensors. This will propel them to continue opening new establishments across the country to service these markets. As a result, the number of industry establishments within the Thermocouple Manufacturing industry is expected to increase in the five years to 2014 at an average annual rate of 0.5%. Moreover, IBISWorld expects this trend to continue into the five years to 2019.
For more information, visit IBISWorld’s Thermocouple Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
The Thermocouple Manufacturing industry manufactures thermocouples, which are devices that consist of two different conductors (usually metal alloys) that produce a voltage proportional to a temperature difference between either end of the pair of conductors.
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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