Increased demand from a rejuvenated automotive sector has spurred revenue growth
New York, NY (PRWEB) September 01, 2014
The Hose and Belt Manufacturing industry produces a range of products, such as automotive v-belts, hydraulic hoses and belts for conveyers, which it then sells to other manufacturers or heavy-industry operators, like mining companies. According to IBISWorld Industry Analyst Stephen Morea, “this industry is dependent on US manufacturing activity and industrial output and is dependent on two key markets.” The first is the oil and natural gas exploration and production market (E&P), which purchases belts and fluid-transfer hoses, and the second is the automotive sector, which purchases vehicle hoses and transmission belts for auto-manufacturing and auto-repair. In the five years to 2014, a revival in US industrial output and strong demand from downstream customers has helped increase industry.
Much of this growth, however, is the result of the industry rebounding from sharp recessionary lows, as high unemployment and falling consumer spending led to fewer factory orders and a striking slowdown in the automobile industry, as two key buyers of industry products, GM and Chrysler, filed for bankruptcy in 2009. Nevertheless, industry revenue has rebounded dramatically starting in 2010, spurred by an increase in new car sales, greater oil and natural gas E&P spending and higher demand from automotive and construction operators in developing countries, which increased hose and belt exports. In 2014, higher industrial output and strong domestic demand from original equipment manufacturers is expected increase industry revenue.
“In the five years to 2019, continued improvement in downstream markets, especially US oil and gas E&P, will lead to higher demand for industry products,” says Morea. Additionally, increased automotive demand from emerging economies will help industry exports. However, anticipated slight price pressures from inputs such as plastic and rubber may temper industry growth. As a result, revenue in the Hose and Belt Manufacturing industry is expected to increase in the five years to 2019.
For more information, visit IBISWorld’s Hose & Belt Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
The Hose & Belt Manufacturing industry manufactures a range of plastic and rubber hoses and belts, including garden hoses. These products are then sold to manufacturers; coal, oil and gas industries; and the automotive market. The industry includes manufacturing of plastic tubing, rubber tubing and fluid power hose assemblies.
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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