Power Circuit Breaker Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated
New York, NY (PRWEB) September 18, 2014 -- The Power Circuit Breaker Manufacturing industry is expected to grow over the five years to 2014. Following a drop in revenue during the recession, recovering demand from the downstream commercial and residential construction sector has accelerated growth over the past five years. According to IBISWorld Industry Analyst Britanny Carter, “strong demand from residential construction is expected to bolster revenue.” However, heightened competition from low-cost imports will limit growth.
Due to strong demand from industrial and utility construction, the industry fared relatively well during the recession; however, overall demand contracted during 2009 as the economic downturn forced demand from other downstream industries to plummet. Nonetheless, economic conditions have improved and activity within these key downstream markets has grown since the end of the recession. Additionally, depreciation of the US dollar boosted exports over the five-year period. Growing competition from imports, however, has hindered growth in recent years.
“Attracted by lower wage costs and emerging markets, many companies are also opting to shift production overseas and automate their domestic facilities,” says Carter. The domestic market for power circuit breakers is saturated, and growing economies like China offer proximity to rising downstream industries. As a result, establishment numbers are expected to contract over the five years to 2014 despite growing demand. Moreover, companies are consolidating to expand their market reach and reduce competition, decreasing the number of enterprises. Consolidation is expected to continue over the next five years, albeit at a slower rate.
Downstream markets will grow further over the next five years, leading to greater demand for newly manufactured circuit breakers. Imports, however, are expected to accelerate over the next five years as the US dollar appreciates, decreasing the relative price of imported goods. As foreign competition rises, companies will increasingly eliminate peripheral labor and move operations overseas in order to maintain profitability. Remaining operations will be increasingly automated to mitigate higher wage costs. Overall, IBISWorld forecasts that industry revenue will grow over the five years to 2019.
For more information, visit IBISWorld’s Power Circuit Breaker Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
The Power Circuit Breaker Manufacturing industry manufactures power circuit breakers that protect electrical circuits from anomalies in power supply, including overflooding or short circuiting. Various kinds of circuit breakers provide differing dimensions, depending on the user's need. Industry products are widely used by customers ranging from corporate enterprises to households. This industry does not include fuses, knife switches, panelboards nor distribution switchboards.
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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.
Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]
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