Fire and Smoke Alarm Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated
New York, NY (PRWEB) February 21, 2015 -- The Fire and Smoke Alarm Manufacturing industry is tightly connected to the downstream construction market, as most safety alarms and detectors are installed during construction of a new residential or commercial building. Consequently, the performance of smoke and fire alarm producers depends on activity in these industries. Over the five years to 2015, the value of residential construction has increased at an average annual rate of 7.4%, while the value of nonresidential construction, which includes retailers, offices, schools and hospitals, has also exhibited growth. “Improving demand from construction has allowed for steady revenue gains in the five years to 2015,” according to IBISWorld Industry Analyst Darryle Ulama. Over this time, industry revenue is expected to rise at an average annual rate of 3.5% to $1.6 billion, including a 2.0% growth in 2015.
In addition to renewed construction activity, the industry has benefitted from the growth of its export segment. Although the trade-weighted index, a measure of the strength of the US dollar, has increased in the past five years, the industry's export value has risen at an annualized 5.1% due to strong demand in emerging markets with prolific construction activity. “However, a strong currency has also allowed for greater imports, as the American purchasing power increases in international markets,” says Ulama. Foreign competitors from Mexico and China have satisfied a greater share of domestic demand in the past five years. By 2015, imports are expected to satisfy 7.6% of domestic demand.
As the domestic construction segment continues to grow over the five years to 2020, demand for industry products will remain consistent. IBISWorld anticipates the value of residential construction will grow at an annualized 6.8% per year and commercial construction to rise an annualized 5.2% in the same time. As a result, revenue for the Fire and Smoke Alarm Manufacturing industry is projected to grow at an annualized rate of 3.5% to $1.9 billion in 2020. However, the US dollar is forecast to appreciate further over the period, stifling the industry's export market growth and encouraging import competition. Nevertheless, strong demand from construction activity in rapidly urbanizing countries will sustain exports in the outlook period.
For more information, visit IBISWorld’s Fire and Smoke Alarm Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures fire alarm equipment used for detection in commercial spaces and households.
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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