New York, NY (PRWEB) June 12, 2014
The Garage Door Manufacturing industry experienced severe revenue declines early in the period. The housing bubble burst and subsequent recession created an environment in which residential and commercial building, employment levels, consumer spending, and business and consumer confidence all dramatically declined. The Garage Door Manufacturing industry relies heavily on new residential and commercial construction for its revenue; in 2014, these two markets are expected to combine for about 80.7% of industry revenue. Therefore, when the economy deteriorated during the recession, garage door manufacturers immediately felt the effects. However, economic recovery since has renewed demand for construction, and, consequently, industry products. Over the five years to 2014, industry revenue is expected to grow at an average annual rate of 4.4% to $4.5 billion.
The drastic shifts in demand for garage doors, together with volatile raw material prices, forced many garage door manufacturers to exit the industry during the past five years. From 2009 to 2014, the number of industry companies is estimated to fall at an average annual rate of 0.8% to 693, dipping 2.1% in both 2010 and 2011. Nevertheless, conditions have improved for garage door manufacturers. In 2014, industry revenue is expected to jump 6.6% thanks to a 20.3% jump in housing starts. As the industry is cyclical, improving economic conditions are providing a better operating environment for manufacturers. While housing starts plummeted over 2009, robust growth has subsequently followed, with the number of housing units anticipated to rise at an average annual rate of 15.0% in the five years to 2014. The commercial building construction industry continued to feel the lingering effects of the recession through 2011, and it was not until 2012 that its revenue began to trend upward. Similarly, the Garage Door Manufacturing industry returned to revenue growth in 2011.
The next five years are likely to be promising for industry operators. From 2014 to 2019, industry revenue is projected to rise at an average annual rate of 4.7% to $5.6 billion. The number of housing starts, demand from commercial building construction and demand for remodeling are all forecast to be on the rise. Additionally, raw material prices (e.g. steel and wood) will be more stable, improving industry profit margins.
The Garage Door Manufacturing industry is characterized by several large national manufacturers and many smaller regional and local manufacturers; therefore, market share concentration is low. In 2014, the top four industry operators are expected to account for about 26.3% of total industry revenue. Most manufacturers operate locally and provide services to a small segment of the population. Nonetheless, market share has increased over the past five years because a number of companies were acquired during the recession. Larger companies are looking to expand their footprint in nearby areas, where they can add value and turn once-struggling operations into profitable ventures.
For more information, visit IBISWorld’s Garage Door Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
The Garage Door Manufacturing industry includes establishments that primarily manufacture garage doors. Manufacturers of garage door openers and installers of garage doors are excluded from this industry.
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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