The industry is projected to grow at a faster rate as companies invest in new products.
(PRWEB) August 15, 2014
The Laboratory Fume Hoods Manufacturing industry manufactures ventilation devices that are designed to limit exposure to hazardous or noxious fumes, vapors or dusts. As the economy started showing signs of weakness and the United States retreated into a recession, fume hood manufacturers faced decreased demand for industry products. When revenue for businesses and laboratories fell, they could not justify investing in new lab equipment, which includes fume hoods. Although demand has picked up in line with the recovering economy, the recessionary decline has continued to weigh heavily on the industry. As a result, Laboratory Fume Hoods Manufacturing industry revenue is expected to stagnate over the five-year period, declining slightly at an annualized rate of 0.0% to $625.9 million.
Research and development (R&D) spending is tied to total corporate revenue. As a result, it fluctuates closely with the overall economy. According to IBISWorld Industry Analyst Dmitry Diment, “When revenue tightened during the recession, businesses cut back on funding research in order to develop new products.” Total R&D expenditure declined through 2010, and as a result, investment in laboratory and safety equipment, including fume hoods, dropped significantly. However, in 2011, economic conditions improved and corporate profit continued to recover. Consequently, total R&D expenditure rose 3.3% during that year. R&D is projected to continue to expand moderately over the five year period, growing 1.9% per year on average. Despite the slowed growth in R&D expenditure, the industry has benefited from new product offerings that save energy through lower air volume, while at the same time, adhering to changing regulations and testing standards. Ductless hoods have further improved energy efficiency and cost savings by using activated carbon filters to remove toxins from the airstream. As a result, industry revenue is expected to grow 2.1% in 2014.
“Over the five years to 2019, the industry is projected to grow at a faster rate as companies invest in new products, thus increasing their R&D expenses,” says Diment. One of the primary impetuses of growth will be an increase in international demand for US laboratory fume hood products. Strong growth in research capabilities among private, government and educational institutions in China and the rest of Asia will likely drive growth in exports.
For more information, visit IBISWorld’s Laboratory Fume Hoods Manufacturing industry in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.
IBISWorld industry Report Key Topics
The Laboratory Fume Hoods Manufacturing industry includes establishments operating within the United States that manufacture fume hoods, which are ventilation devices designed to limit exposure to hazardous or noxious fumes, vapors or dusts.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.