Industry revenue is growing consistently as R&D spending rises and exports increase.
New York, NY (PRWEB) August 11, 2014
The Laboratory Casework Manufacturing industry experienced shaky conditions over the past five years. This industry manufactures laboratory casework furniture, including cabinets, cases, benches, tables and fixtures. As the economy retreated into a recession, demand for industry products fell and revenue declined. “When revenue for businesses and laboratories declined, they were no longer able to justify investing in new laboratory furniture,” according to IBISWorld Industry Analyst Dmitry Diment. Although the economic recovery has facilitated revenue growth since 2011, demand for industry products has been consistently undercut by rising import penetration. Consequently, industry revenue is expected to stagnate over the five-year period, growing at a mere 0.1% per year on average to $1.3 billion. Nonetheless, continued economic improvement is expected to encourage stronger industry growth in 2014, with revenue forecast to rise 1.9%.
Research and development (R&D) spending is tied to total corporate profit and therefore shifts in line with the overall economy. R&D expenditure fell during the recession, resulting in lower investment in laboratory casework purchases, replacements and laboratory expansions (which also necessitate casework purchases). However, R&D expenditure is estimated to rise at an annualized rate of 1.9% over the five-year period, reinvigorating demand for laboratory furniture. “Nonetheless, rising import penetration undermined revenue growth, as manufacturers' continued to relocate operations abroad to take advantage of lower wages,” says Diment. Imports are estimated to account for 49.1% of domestic demand in 2014, compared with 39.7% in 2009.
Over the five years to 2019, the industry is projected to grow more consistently as downstream companies invest in new products again. To accommodate robust R&D expenditure, businesses will increase demand for laboratory furniture. While rising imports levels are expected to challenge the industry, strong export growth will provide a significant opportunity for expansion. Exports are forecast to increase during the five years to 2019, primarily due to rising demand for US laboratory casework products in emerging nations.
For more information, visit IBISWorld’s Laboratory Casework Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in this industry manufacture laboratory furniture (casework), including cabinets, cases, benches, tables and fixtures. This industry excludes dental laboratory furniture as well as laboratory seating.
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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