Government safety compliance helped offset slow demand from construction sites
Los Angeles, CA (PRWEB) October 11, 2012
From manufacturing plants and construction sites to nuclear power plants, oil refineries and shipyards, non-destructive testing (NDT) is used for numerous applications across a wide range of industries. NDT services are used to detect flaws, cracks, variations and minute changes in structures and surface finish without damaging the products being tested. Rapidly changing technology and the increasing complexity of products and processes that need testing have boosted demand for the Non-Destructive Testing Services industry, says IBISWorld industry analyst Andrea Alegria. “More so, strict government regulation relating to health, safety and the protection of the environment continues to drive industry revenue growth.”
In the five years to 2012, despite the economic recession and its aftereffects on the general economy, industry revenue grew an estimated 5.2% per year on average to $727.5 million. “Although there was less new construction and many projects were stalled during the five-year period, the need for compliance with government safety regulations helped mitigate industry revenue declines relating to construction site inspections,” says Alegria. The Non-Destructive Testing Services industry was not completely immune to the recession, however, and revenue declined 4.3% in 2009. The recession caused some industrial plants to close and forced others to postpone or reduce maintenance expenditures. Nonetheless, industry revenue rebounded in 2010 and has continued to grow since.
The industry's expansion will continue in the five years to 2017. Continuing technological innovation will make NDT services more cost effective and efficient for end users, which will boost demand for industry services. Greater demand will, in turn, lure more entrants into the industry. Despite new entrants, the industry will continue to consolidate as firms seek to expand their geographic reach and enter niche markets. Larger players are expanding by hiring more certified personnel or acquiring smaller firms, through which they are able to expand their products and services to new markets and work with a larger number of industries. These trends, combined with increasing demand from downstream clients for one-stop shops, are pushing market share concentration up. IBISWorld estimates that the industry’s concentration is currently at a medium level. Major players include Rockwood Service Corporation, Team Industrial Services and Applus. For more information, visit IBISWorld’s Non-Destructive Testing Services in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes companies that primarily perform nondestructive tests and inspections on industrial assets. It excludes medical tests, as well as nondestructive testing equipment manufacturing.
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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