Automatic Fire Sprinkler System Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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In the five years to 2014, rapidly growing construction markets have revamped sales of sprinklers, spurring revenue growth for industry operators; over the next five years, the industry is expected to continue growing at the heels of accelerating construction, particularly nonresidential, and stringent fire safety regulation. For these reasons, industry research firm IBISWorld has added a report on the Automatic Fire Sprinkler System Manufacturing industry to its growing industry report collection.

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Operators are facing competition from foreign manufacturers in the global market

The Automatic Fire Sprinkler System Manufacturing industry produces automatic fire suppression products for use in residential and nonresidential buildings. Automatic sprinklers typically consist of a network of pipes connected to a building's water supply and can detect heat automatically, releasing water to combat the flames. Because sprinklers are typically installed in new buildings, demand for industry products corresponds to the level of new construction activity in the economy. In the five years to 2014, rapidly growing construction markets have revamped sales of sprinklers, spurring revenue growth operators in the Automatic Fire Sprinkler Manufacturing industry at an estimated 7.9% per year on average. This includes forecast growth of 3.4% over 2014, bringing total revenue to $365.0 million.

According to IBISWorld Industry Analyst Amal Ahmad, “The industry is small and heavily consolidated.” IBISWorld estimates that 27 companies operate in the industry, with the top two, Tyco and the APi Group, generating over three quarters of annual industry revenue. These companies are able to use economies of scale in production to minimize costs; in addition, they are able to capitalize on brand recognition and established networks with downstream markets to fend off competition. Competition in this industry is both internal and external. Internally, major players must compete with the smaller localized providers who may be better positioned to customize sprinklers to customer specifications. Externally, all industry operators must deal with competition from imports, which has been high and rising over the past decade. Currently, imports of automatic sprinklers satisfy over half of domestic demand, competing on the basis of cost-effectiveness and price.

“The industry is also export-intensive, and, in 2014, is expected to generate just under one half of annual revenue from sales to global markets,” says Ahmad. US manufactured automatic sprinkler systems compete in global markets on the basis of high quality and breadth of product offerings. However, operators are facing competition from foreign manufacturers in the global market too, where Chinese sprinklers, for example, sell for much lower. Going forward, IBISWorld expects the industry to continue to benefit from growing construction at home and abroad while grappling with high competition and saturating markets.

For more information, visit IBISWorld’s Automatic Fire Sprinkler System Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

The Automatic Fire Sprinkler System Manufacturing industry manufactures fire-protection systems that use automatic sprinklers. These systems typically consist of a network of pipes connected to a building's water supply. Industry products include devices that detect fire and automatically release water to combat the flames.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

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.

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Gavin Smith
IBISWorld
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