Revenue in the Demolition Equipment Manufacturing industry is forecast to pick up in 2012 and 2013 as non-residential construction activity increases, according to a new report released today by IBISWorld, the nation's largest publisher of industry research. Industry growth will then soften as the economy settles on a weaker long-term growth path and manufacturers shift production offshore. Over the five years to 2016, IBISWorld estimates that revenue will increase at an average annual rate of 2.6% to $7.0 billion, including growth of 2.8% in 2012. For this reason, industry research firm IBISWorld has added a report on the Demolition Equipment Manufacturing industry to its growing Construction Machinery Manufacturing report collection.
Los Angeles, California (PRWEB) December 01, 2011
Revenue in the Demolition Equipment Manufacturing industry is forecast to pick up in 2012 and 2013 as non-residential construction activity increases, according to a new report released today by IBISWorld, the nation's largest publisher of industry research. Industry growth will then soften as the economy settles on a weaker long-term growth path and manufacturers shift production offshore. Over the five years to 2016, IBISWorld estimates that revenue will increase at an average annual rate of 2.6% to $7.0 billion, including growth of 2.8% in 2012. For this reason, industry research firm IBISWorld has added a report on the Demolition Equipment Manufacturing industry to its growing Construction Machinery Manufacturing report collection.
The Demolition Tools & Equipment Industry was flattened by the recession. The industry's performance is closely tied to the construction market, since property developments often involve demolishing existing buildings and structures and cleaning up sites to make way for new construction. Prior to the recession, the industry was charging along, spurred by strong demand for commercial, residential and infrastructure construction. However, the collapse of the real estate market crippled the construction and demolition markets, causing downstream construction industries to purchase less demolition equipment. According to IBISWorld analyst, Nima Samadi, the Demolition Tools & Equipment Manufacturing industry is slowly fighting its way back, with revenue having grown 7.3% in 2010 as a result of pent-up demand for demolition equipment and the freeze over the construction industry slowly thawing. Industry revenue is expected to decline at an average rate of 0.6% per year to $6.1 billion in the five years to 2011, with revenue expected to perk up by an additional 0.2% in 2011.
Before the financial crisis, exports in the Demolition Tools & Equipment Industry demonstrated strong growth as firms looked to emerging countries for new markets. Since 2007, US firms like Caterpillar (Cat, Olympian , Turbomach, MaK) and Terex have expanded heavily into emerging markets in Asia, Latin America and Eastern Europe. Demand for demolition machinery is expected to rebound strongly in emerging markets over 2011, with exports growing 6.4%. The Chinese government's $590.0 billion stimulus package and booming housing market will continue to drive demand for demolition equipment. Indian and Latin American countries are also expected to demonstrate solid growth over 2011, fueling demand for demolition equipment in these markets.
Source:cmbol.com