Ice Making Machine Manufacturing in the US Industry Market Research Report Now Available from IBISWorld
Los Angeles, CA (PRWEB) July 25, 2013 -- The Ice Making Machine Manufacturing industry has exhibited volatile growth over the past five years. Food services providers are the industry's primary market, and downstream firms experienced sharp declines in revenue during the recession. Disposable income fell, and households cut back on restaurant expenditures. As a result, restaurants and other food services providers reduced investments in durable machinery, such as ice making machines. Furthermore, falling disposable income decreased consumer demand for home-use ice making machines. Other downstream industries, such as supermarkets, grocery stores and hotels, also suffered from poor revenue growth during the past five years. Strong export growth partly made up for stagnant domestic demand, but it was unable to return this industry to prerecession levels. In the five years to 2013, IBISWorld expects industry revenue to slowly increase at an annualized rate of 0.5% to $762.5 million. This industry has steadily recovered in recent years as economic growth picked up. Because most consumers consider food a necessity, food services providers quickly recovered from the recession. In 2013, demand from the food services sector is estimated to increase 3.6%, fueling this industry's revenue growth of 2.9% over the year.
While the recovery from the recession resulted in marginal revenue growth over the past five years, industry profit margins have taken a hit during the period. Profit sharply decreased over 2009 because industry operators lowered prices to attract more customers. Since then, profit has struggled to recover due to rising import competition. Firms have also increased capital expenditures on industrial automation and other labor-saving technologies, which led to higher short-term costs. In 2013, profit is estimated to total 5.9% of revenue, compared with 6.5% in 2008. In the five years to 2018, this industry is projected to grow at a faster rate. The downstream food services sector is anticipated to expand an average of 2.2% per year, while the accommodations services sector is forecast to grow at an annualized rate of 3.3%. However, import competition will continue to increase, especially as the dollar appreciates. As a result, profitability will surpass prerecession levels because industrial automation will steadily lower wage costs.
The Ice Making Machine Manufacturing industry has a high level of concentration. In 2013, the top three industry companies account for an estimated 89.0% of industry revenue. Industry concentration has increased in the five years to 2013 as the number of industry enterprises has declined at an annualized rate of 0.8%. As such, IBISWorld expects revenue per enterprise to increase from $28.6 million in 2008 to $30.5 million in 2013. As the industry becomes increasingly concentrated, the threat of potential entrants diminishes as the existing companies take advantage of cheaper supply contracts due to the size and scope of their operations. For more information, visit IBISWorld’s Ice Making Machine Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
Industry establishments manufacture commercial- and household-use ice making machines, including ice cube makers, ice flake makers and refrigerator ice makers.
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, 310-866-5042, [email protected]
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