Product innovation will allow the industry to tap into new customer segments, such as renewable energy and biotechnology.
New York, NY (PRWEB) May 13, 2014
The Navigational Instrument Manufacturing industry produces various devices, including search, detection and navigational instruments, as well as electricity measuring and testing tools. The industry thus has a diverse clientele, including industries in air-traffic control, shipbuilding, construction, healthcare and research. Because of the industry's diverse revenue base, it has experienced low volatility in the past five years, even when the recession decreased demand for industry products.
In the five years to 2014, industry revenue is expected to increase an annualized 3.0% to $118.8 billion, including a 2.2% increase in 2014. As the economy improved, rising corporate profit has allowed private research and development (R&D) budgets to expand during this period, providing the investments needed for industry product innovation. New products have allowed the industry to remain competitive in the face of rising foreign competition and changing demand in downstream markets, thus contributing to revenue growth. Additionally, growth in customer industries such as aircraft manufacturing, lab services and construction have provided strong demand for various instruments and devices.
According to IBISWorld Industry Analyst Darryle Ulama, “More robust revenue growth in the five years to 2014 has been limited by an appreciating dollar, which threatens the industry's trade performance.” The trade-weighted index, a measure of the dollar's strength relative to other major currencies, has been increasing since 2012, and is expected to increase an additional 1.7% in 2014. A stronger dollar has led to a decrease in industry exports in 2013 and 2014, as industry products become more expensive on the world market. The appreciation has also increased the purchasing power of American consumers, leading to a significant rise in import volumes in the past five years.
In the five years to 2019, industry revenue is forecast to increase. An increase in R&D funding will continue to drive product advancement during this period, which will strengthen the already solid demand from downstream industries. “Product innovation will also allow the industry to tap into new customer segments, such as renewable energy and biotechnology,” says Ulama. However, the industry's export segment will continue to decline due to an appreciating dollar and greater international competition. Imports are also expected to rise during this period, satisfying a larger portion of domestic demand.
For more information, visit IBISWorld’s Navigational Instrument Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in the Navigational Instrument Manufacturing industry manufacture navigational, measuring and control instruments. The industry’s products include aeronautical instruments, appliance regulators and controls (except switches), laboratory analytical instruments, navigation and guidance systems, and physical properties testing equipment.
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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