Improving construction and manufacturing markets will boost industry demand.
New York, NY (PRWEB) December 14, 2014
Like most wholesalers, operators in the Safety Equipment and Supplies Distributors industry seek to purchase goods at a discount and sell them at a premium. Unlike other wholesalers, the nature of safety equipment ensures a more stable level of demand thanks to federal and company-specific regulations mandating the use of safety equipment and supplies in certain hazardous work environments. In this way, overarching regulations and policies constitute a major form of industry assistance. “At the same time, a lack of substitutes for industry products limits external competition,” according to IBISWorld Industry Analyst Jocelyn Phillips.
Industry revenue performance remains tied to two broad but well-defined downstream markets: manufacturing and construction. Those sectors demand a wide variety of safety equipment and supplies, from rubber mats used for standing for long periods to ionizers that reduce static electricity in the air. “The performance of these downstream markets can be measured using the industrial production index as a proxy for overall manufacturing activity and the total value of construction as a gauge for demand from builders,” says Phillips. As these indicators fluctuate, demand and revenue for related safety goods moves in kind. The number of work-related deaths also has a bearing on industry demand, as upticks in this metric can spur new legislation or product redesigns that drive replacement demand.
During the past five years, economic recovery has spurred demand from these key downstream sectors. Unemployment rates in the US have slowly decreased, driving increased consumer spending and recovering demand for manufactured goods. Likewise, housing starts and the overall value of construction in the United States have both steadily recovered in the years since 2011. As a result, industry revenue is expected to grow at an annualized rate of 2.4% in the five years to 2014. In 2014, IBISWorld expects ongoing recoveries in key downstream markets, and further decreasing levels of unemployment will continue to boost downstream demand, driving one-year industry revenue growth of 4.1% to total $11.8 billion. This recovery is forecast to continue through the coming five years.
For more information, visit IBISWorld’s Safety Equipment and Supplies Distributors in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in this industry distribute and deliver safety equipment and supplies to businesses and consumers. Generally, these items are purchased in bulk for manufacturing, construction and other labor-intensive industries. Distributors with retail outlets are included, but manufacturers with retail outlets and suppliers of goods for medical and healthcare markets are excluded.
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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