Thermostat Manufacturing in the US Industry Market Research Report Now Available from IBISWorld
Los Angeles, CA (PRWEB) July 31, 2013 -- After a major hiccup during the economic downturn, when revenue fell 3.9% in 2008 followed by a whopping 16.6% decline in 2009, the Thermostat Manufacturing industry returned to strong growth in 2010 and has been on the rise ever since. In the five years to 2013, IBISWorld expects industry revenue to grow at an annualized rate of 2.2% to $3.1 billion, including a 4.7% increase in 2013. The industry's largest markets are residential and nonresidential building industries and durable goods manufacturers, which account for more than half of industry revenue. Unfortunately for thermostat manufacturers, the subprime mortgage crisis and subsequent recession brought housing construction to a virtual standstill and significantly slowed nonresidential construction projects, such as office towers and retail centers. In addition, demand for the manufactured goods associated with a new home or office purchase, such as water heaters, laundry machines, dish washers, refrigerators, stoves and other appliances, declined. These factors led to large revenue declines and hurt profitability.
Fortunately for the industry, construction activity, particularly new home construction, has picked up significantly the past few years, spurring strong revenue growth and higher profit margins. The Thermostat Manufacturing industry has a moderate level of concentration. Honeywell and Johnson Controls are the major players. Market share concentration has remained relatively stable over the past five years because the number of companies stayed stable. Operator numbers dipped in 2009 and 2010 in the midst of the housing crash and faltering demand, thus causing concentration to increase slightly. However, as the economy and revenue recover, more operators will enter the market, causing concentration to dip again.
The industry is poised for stronger growth over the next five years, thanks to a strengthening construction sector, which will boost demand for thermostats for new homes and commercial buildings. In addition, growing demand for energy-efficient thermostats will further drive revenue and profit growth. For more information, visit IBISWorld’s Thermostat Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures automatic temperature controls and regulators for applications such as heaters, air conditioners, refrigerators and appliances. These controls are used in a variety of settings, including offices, homes, factories and in industrial equipment.
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, 310-866-5042, [email protected]
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