New York, NY (PRWEB) June 14, 2014
The Tower Crane Manufacturing industry manufactures tower cranes for use in the construction of tall buildings. Tower cranes are stationary and produced in component parts of mast, slewing unit and jib. Once assembled, the crane can reach several hundred feet in height and lift up to 20 tons of material. The largest end market for tower cranes and components is the nonresidential construction sector. Residential construction also generates demand for tower cranes due to the growing popularity of tall multifamily residential complexes. Accelerating construction activity in both sectors is anticipated to propel revenue growth in the industry an annualized 3.3% in the five years to 2014. This includes forecast growth of 7.9% over 2014, bringing total revenue to $1.2 billion.
According to IBISWorld Industry Analyst Amal Ahmad, “Rebounding construction markets have enabled operators to slowly raise selling prices without compromising demand.” This has boosted profit margins from their historic lows at the height of the recession. Profitability has also been aided by the limited extent of import competition, since tower cranes and their components are very heavy and costly to transport. In fact, the industry is highly concentrated, with only about 21 companies servicing the national market; the largest operator, Manitowoc, is expected to generate half of total industry revenue alone in 2014. Concentration and economies of scale in production have helped tower crane manufacturers deal with ongoing challenges, including volatile movements in the price of steel inputs.
Industry performance is expected to improve further over the next five years as construction markets stabilize and as operators continue to benefit from limited import penetration. “The vertical growth of highly populated urban areas will also accelerate demand for tower cranes,” says Ahmad. Overall, IBISWorld anticipates revenue growth over the five years through 2019. The industry is expected to remain competitive and concentrated, with operators focusing on limiting costs, enhancing operational efficiencies and tapping into expanding construction markets.
For more information, visit IBISWorld’s Tower Crane Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in the Tower Crane Manufacturing in the US industry manufacture tower cranes for use in the construction of tall buildings and structures. Tower cranes are stationary and consist of a base, mast and slewing unit that allows for rotation; they are typically transported in their component parts to nearby construction sites for assembly. This industry does not manufacture truck-mounted, jib or mobile cranes.
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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