As the economy recovers, steady demand in export markets will boost industry performance.
New York, NY (PRWEB) September 15, 2014
Stair lift manufacturers offer several different variations on the industry's core product, a device that carries individuals up and down stairs. Stair lifts may be designed to fit straight or curved stairs, for indoor or outdoor placement, in residential, commercial or institutional settings. “Demand for almost all types of industry products has grown during the five years to 2014, as the growing elderly population has increasingly experienced age-related health problems, such as arthritis, which makes climbing stairs difficult,” according to IBISWorld Industry Analyst Jocelyn Phillips. At the same time, recent increases in disposable income have allowed for more patients to be able to afford home stair lifts, a trend further bolstered by the expansion of healthcare coverage to millions of previously uninsured Americans under the Patient Protection and Affordable Care Act (PPACA). As a result of these factors, industry revenue is expected to grow 7.2% per year on average from its 2009 recessionary low, to reach $79.7 million in 2014. The PPACA-mandated establishment of private healthcare exchanges will likely cause revenue to grow 4.9% in 2014 alone.
As consumers have increasingly been able to purchase the industry's priciest products, such as lifts with customized tracks or seats, the profit margin for an average industry operator is expected to climb. “However, profit margin growth has been limited due to the climbing cost of purchases,” says Phillips. Plastic, rubber and steel are all key components of most stair lifts, and all three of these materials have experienced significant price hikes since 2009, limiting industry profit growth relatively.
Nonetheless, steadily growing demand from customers who are able to afford industry products is expected to continue during the five years to 2019, and growing profitability will likely entice some new operators to enter the industry. Steady demand in export markets will likely further bolster industry performance, as foreign economies continue to recover from the global recession and increasingly demand high-quality American-made home medical equipment. In the domestic market, total health expenditure is expected to grow during the next five years, as baby boomers increasingly experience age-related walking impairments that drive increased demand for stair lifts.
For more information, visit IBISWorld’s Stair Lift Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry comprises establishments that manufacture stair lifts (i.e. chair lifts) and their associated parts for use in commercial and residential buildings.
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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