Metalworking Machinery Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated
New York, NY (PRWEB) September 22, 2014 -- In the five years to 2014, the Metalworking Machinery Manufacturing industry has rebounded from recessionary lows. The industry produces power-operated tools and machine accessories used for finishing or shaping metal parts. “Industry companies develop tools and equipment that downstream producers, including motor vehicle parts manufacturers, use,” according to IBISWorld Industry Analyst James Crompton. Machine shops are also a key source of demand for metalworking products. Additionally, activity in manufacturing industries filters into this industry in the form of private investment in metalworking machinery. In 2009, industry operators faced a disastrous year, with revenue falling 30.6%, as the recession squeezed demand in the automobile and construction sectors. Revenue is expected to climb at an annualized rate of 5.5% over the period as the industry rebounds from its low in 2009. IBISWorld expects growth to continue in 2014, with revenue increasing 2.0% to $29.3 billion.
Private investment in metalworking machinery has been improving in the past five years. “As manufacturing industries recover from the recession, demand will be steady for industry manufacturers due to the widespread use of their products,” says Crompton. Nevertheless, competition from affordable imports has undermined the efforts of domestic manufacturers; as a result, the number of industry operators has fallen at an annualized rate of 2.0% to 6,454 during the past five years. Additionally, wages are expected to rise as industry employment and downstream demand pick up. Wages are expected to rise at an annualized rate of 2.9% to $8.1 billion in the five years to 2014.
IBISWorld anticipates that moderate growth will continue in the five years to 2019. Robust demand from Asian markets and rising commodity prices will likely drive renewed investment across the mining and energy sectors, sustaining demand for metalworking products that manufacture related equipment. In the latter half of the next five years, industry revenue will level off, as competition from emerging markets in Asia increases and the continued relocation of American production to overseas factories reduces the industry's potential revenue base. Still, as the global economy improves and downstream demand for machinery and equipment rebounds, IBISWorld forecasts industry revenue to increase in the five years to 2019.
For more information, visit IBISWorld’s Metalworking Machinery Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in the Metalworking Machinery Manufacturing industry primarily manufacture power-operated tools that are used for finishing or shaping metal parts, which are then used to manufacture other machines. Industry products include: wire drawing and fabricating machines, metal cutting tools, special dies and coil handling equipment. This industry excludes companies that primarily manufacture power tools and other general-purpose machinery accessories (IBISWorld report 33399).
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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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