Alarm, Horn & Traffic Control Equipment Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated
New York, NY (PRWEB) December 22, 2014 -- Competing trends from its downstream markets have led to volatile performance in the Alarm, Horn and Traffic Control Equipment Manufacturing industry during the past five years. Demand for industry products, which are often installed during the construction or manufacturing processes, plummeted in the aftermath of the recession, as overall construction activity fell. In 2009, the industry suffered a decline in revenue, but quickly enjoyed a significant turnaround in 2010, when a rebound in vehicle manufacturing led to impressive growth. Strong demand from automobile manufacturing and an improving housing market has led industry revenue to grow in the five years to 2014. However, weaker infrastructure spending, slow growth in investments for nonresidential property and an appreciating dollar are expected to contract industry revenue in 2014.
According to IBISWorld Industry Analyst Darryle Ulama, “Even with the industry's positive revenue trend, tough economic conditions, growing imports and diminishing exports have fueled a rash of consolidation and restructuring activity within the industry.” Manufacturers have offshored operations to take advantage of lower production costs overseas, compete with international players and tap the lucrative markets of rapidly urbanizing countries. While this trend has led to a drop in industry enterprises, it has helped increase profit margins. The industry's shift toward specialty, higher-margin goods in the wake of importers supplying a greater share of the industry's basic products has fueled profit growth.
“Despite the doom and gloom of the recession, the industry is poised for growth over the next five years, as domestic construction and manufacturing activity picks up,” says Ulama. In the five years to 2019, industry revenue is forecast to increase. Higher revenue growth will be limited by an appreciating dollar, which will discourage exports, and uncertainty surrounding public spending on infrastructure. Industry consolidation and exit are expected to continue, as foreign competition intensifies.
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IBISWorld industry Report Key Topics
This industry manufactures communications equipment that includes alarm systems, hazard detection systems, traffic signals, sirens and intercom systems. This industry excludes telephone apparatuses, radio and television broadcast equipment and wireless communications equipment.
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
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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, +1 (310) 866-5042, [email protected]
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