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Hollow Metal Door Manufacturing in the US Industry Market Research Report Now Available from IBISWorld
  • USA - English


News provided by

IBISWorld Inc.

Nov 08, 2013, 02:00 ET

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Industry revenue returned to growth in 2011 and has been on the rise ever since

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Los Angeles, CA (PRWEB) November 07, 2013 -- The Hollow Metal Door Manufacturing industry produces a variety of metal doors that are used in hospitals, schools, prisons, power plants and other nonresidential and residential buildings and structures. Unfortunately for the industry, the collapse of the housing market in 2009 and subsequent recession brought many construction projects to a virtual standstill. As such, industry revenue plummeted in 2009, and fell a further in 2010. In addition to weak demand, hollow door manufacturers also had to contend with extremely volatile input prices. Over the past five years, the price of steel has risen in 2008 and then fell in 2009. The one-two punch of weak demand and volatile input prices hurt industry profit, with margins expected to decrease in 2008.

According to IBISWorld Industry Analyst Olawale Harrison, “Despite these challenges, industry revenue returned to growth in 2011 and has been on the rise ever since, thanks to strong post-recession growth in residential and nonresidential building activity.” For example, after double-digit declines in 2009 and 2010, private nonresidential construction activity finally returned to growth in 2011, and is expected to surge in 2012. In addition, utilities construction grew in 2012 after falling consecutively in 2010 and 2011. Finally, 2012 marked a banner year for residential builders, as residential construction activity increased. Double-digit growth in residential building activity is also anticipated for 2013. These factors have spurred strong postrecession industry growth, with revenue expected to increase over the five years to 2013, including a significant revenue growth in 2013.

The Hollow Metal Door Manufacturing industry consists of a large number of small to midsize firms, with only a few large players. Combined, the four largest players (including Andersen Windows Corporation and Assa Abloy AB) account for a little over 10.0% of the industry's market share (see IBISWorld report OD5733 for major player market shares). The wide variety of products and the diverse buying markets make it difficult for individual firms to grab a large portion of market share. However, the industry's concentration has been increasing slowly. The recent increase in acquisitions indicates that companies are making a concerted effort to increase profitability by claiming larger portions of market share. In the five years to 2018, IBISWorld estimates that the number of hollow door manufacturing facilities will decrease slowly. As revenue increases, companies will invest in research and development in hopes of obtaining a larger market share. Concentration will continue to slowly rise as small, flourishing enterprises start to consolidate with larger players.

“Over the next five years, industry growth is forecast to accelerate,” says Harrison. Despite this growth, the industry will continue to face challenges in the form of rising import penetration. In 2018, imports are expected to account for a little over 5.0% of domestic demand, up from 2013. In response to rising import penetration, the industry will experience a degree of consolidation, as operators offshore or outsource operations, and as larger players acquire smaller operators in order to gain a competitive advantage.

For more information, visit IBISWorld’s Hollow Metal Door Manufacturing in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.

IBISWorld industry Report Key Topics
The Hollow Metal Door Manufacturing industry produces hollow metal doors and frames, including doors and frames that are used specifically for fire, harsh weather and security purposes.

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.

Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]

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