Demand for overhead cranes will rise as industrial and freight transportation activity grows
New York, NY (PRWEB) November 05, 2014
Over the past five years, the Overhead Crane Manufacturing industry slowly recovered from the recession. Industry operators design and manufacture overhead cranes, gantry cranes, straddle carriers, crane monorail systems and related parts and components. These types of cranes are primarily used in industrial and transportation operations, such as shipyards, steel plants, ports, container hubs and distribution centers. In the early part of the five-year period, industry revenue fell as the recession caused US industrial activity and freight volumes to drop, reducing demand for overhead cranes. However, economic growth in subsequent years caused manufacturing output and freight volumes to begin recovering. Therefore, in the five years to 2014, industry revenue is expected to climb at an annualized rate.
However, despite demand growth, the overall market for overhead cranes has been lackluster. Manufacturing capacity utilization, which measures the ratio of actual manufacturing output to potential full capacity output, has yet to recover to prerecession levels. As a result, even as industrial output recovered, manufacturers had plenty of idle capacity to use up and did not need to invest in capacity increasing capital equipment such as overhead cranes. According to IBISWorld Industry Analyst Maksim Soshkin, “Port demand for overhead cranes also grew slowly as container volumes took time to reach prerecession levels.” Nonetheless, demand growth was strong enough for operators to raise prices, recently increasing industry profit.
Over the five years to 2019, industry revenue is forecast to increase. “Continued economic growth is anticipated to lead to higher industrial and freight transportation activity in the United States, resulting in more demand for industry products,” says Soshkin. Manufacturing capacity utilization is forecast to exceed prerecession levels, forcing many manufacturers to expand capacity and purchase new cranes. Moreover, many ports (especially on the East Coast) are anticipated to expand and order new cranes in order to meet rising shipping traffic due to the completion of the Panama Canal expansion in 2016.
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IBISWorld industry Report Key Topics
This industry manufactures overhead cranes, gantry cranes and bridge. Overhead cranes include a hook-and-line mechanism that runs along a horizontal beam, which runs along two widely separated rails.
Key External Drivers
Industry Life Cycle
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Products & Services
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