Forklift Manufacturing in the US Industry Market Research Report Now Available from IBISWorld
Los Angeles, CA (PRWEB) December 06, 2012
Following years of strong growth, the Forklift Manufacturing industry faced tremendous challenges during the economic downturn. The Great Recession left the industry's major downstream manufacturing and construction markets reeling, as consumer spending dropped and credit markets froze. With US manufacturing output slowed and many construction projects delayed or placed on the chopping block, industry demand plummeted, causing revenue to fall 7.8% in 2008 and an additional 16.2% in 2009. "Conditions improved dramatically in 2010 and 2011, as the US manufacturing sector returned to growth in line with rising consumer spending," says IBISWorld industry analyst Sean Windle. In addition, strong demand from overseas markets helped offset painful losses during the recession. Despite recent upticks, industry revenue is expected to grow only 0.9% over 2012 to $ 9.2 billion, marking an annualized decline of 2.0% over the past five years.
Following mostly weak demand from the recession and a significant increase in raw-material prices, profitability has declined over the past five years, falling from 19.8% in 2007 to an estimated 18.5% in 2012. The main culprit for higher raw-material expenses is steel prices, which have risen at an annualized rate of 2.6% over the past five years. According to Windle, these factors also led to a drop in industry participation, as many forklift manufacturers were forced to exit the industry under mounting pressure from weakened demand and constrained margins. Fortunately for the industry, a brighter picture is set to emerge for US forklift manufactures over the next five years. On the back of stronger demand from downstream manufacturing industries and a recovering construction sector, industry revenue is forecast to increase through 2017.
Concentration in the Forklift Manufacturing industry is medium. In 2012, the top-three companies are expected to account for an estimated 42.5% of total industry revenue. The remainder of the market is split among many small and mid-size operators that produce parts and related equipment on a local or regional basis. Concentration is expected to increase marginally during the coming five years, as the number of companies is expected to fall at an annualized rate of 0.7% and total an estimated 476 firms by 2017. The specialized nature of forklift manufacturing limits the opportunities for consolidation, but merger and acquisition activity is likely to occur as larger companies seek greater vertical integration and operational efficiencies through the purchase of smaller parts suppliers. For more information, visit IBISWorld's Forklift Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry primarily manufacture forklifts, which are also known as industrial trucks. Forklifts include truck-type and hand-type pallet movers, skid jacks, portable stackers, straddle carriers, bomb lifts and loading and engine hoists. The manufacture of parts and attachments is included, but revenue from manufacturer-provided services is excluded.
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Globalization & Trade
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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.
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