Recovering demand from downstream markets boosted industry revenue growth.
New York, NY (PRWEB) April 22, 2014
Over the past five years, the Boiler and Heat Exchanger Manufacturing industry recovered from its recessionary trough. Industry operators design, manufacture and occasionally install power boilers and heat exchangers. Power boilers are closed vessels in which liquid is heated to create steam (or gas) for power generation and other processes, while heat exchangers are used for the efficient transfers of heat from one medium to another. Besides power generation, industry products are used in various industrial processes, such as refining, oil extraction and building climate control. According to IBISWorld Industry Analyst Maksim Soshkin, “During the recession, economic and industrial activity plummeted, forcing manufacturers, utilities and commercial developers to cancel or postpone investment into new buildings, facilities and equipment, hurting demand for industry products.” As a result, industry revenue fell 6.1% and 9.4%, respectively, in 2009 and 2010.
However, the recession was relatively shallow, and the economy steadily recovered in subsequent years. Industrial activity picked up, and demand from downstream markets like oil extraction, petroleum refining and electric power generation expanded, resulting in more demand for industry products. On the other hand, the rise in general industrial activity was lukewarm and import competition intensified, tapering industry revenue growth. Nonetheless, demand was strong enough to pull the industry out of its slump; industry revenue is expected to grow at an annualized 2.5% to $1.3 billion in the five years to 2014, including a 0.7% jump in 2014.
In the five years to 2019, industry revenue is expected to continue growing. “Continued economic and industrial growth will fuel more demand for industry products as manufacturers expand their facilities and purchase new equipment,” says Soshkin. In particular, utilities, manufacturers and commercial building owners are anticipated buy the industry's newer, more efficient products as companies seek to lower costs, improve efficiency and lower emissions. Industry players will also increase their focus on exports as rapidly growing emerging markets demand more boilers and heat exchangers. However, import competition is projected to intensify, thereby tapering industry growth.
For more information, visit IBISWorld’s Boiler and Heat Exchanger Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
The Boiler and Heat Exchanger Manufacturing industry manufacturers boilers and heat exchangers. In addition to their manufacturing activities, companies also provide installation services for their products. These products include boilers, which are closed vessels where fluid is heated; heat exchangers, which allow thermal energy to be transferred between fluids while keeping them separate; and radiators, which are simpler forms of heat exchangers.
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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