This article was originally distributed via PRWeb. PRWeb, WorldNow and this Site make no warranties or representations in connection therewith.
Revenue for the Fire and Smoke Alarm Manufacturing industry nearly went up in flames as construction levels severely decreased during the recession, but as the economy recovered, construction levels rose, bringing the industry back to steady revenue growth. For these reasons, industry research firm IBISWorld has added a report on the Fire and Smoke Alarm Manufacturing industry to its growing industry report collection.
Los Angeles, CA (PRWEB) December 14, 2012
The Fire and Smoke Alarm Manufacturing industry is tightly connected to the downstream construction market. Most safety alarms and detectors are installed during construction of a new residential or commercial building. Consequently, the performance of smoke and fire alarm producers depends on activity in these sectors. According to IBISWorld industry analyst Nikoleta Panteva, over the five years to 2012, the value of residential construction has declined at an average annual rate of 9.2% while the value of nonresidential construction (which includes retailers, offices, schools and hospitals) has declined at 4.7% per year, on average. Meanwhile, industry revenue has declined at an annualized rate of 1.1% to $1.4 billion in 2012, as demand from new construction dropped, industry performance suffered. The commercial construction sector has begun its recovery, however, underpinning revenue growth for operators in the Fire and Smoke Alarm Manufacturing industry.
Trade has been a bright spot for the industry since 2007. With the US dollar depreciating, competing imports have become less of a threat due to their relatively higher prices. As such, industry imports have declined at an average annual rate of 5.1% over the five years to 2012. Meanwhile, US-made alarms and detectors have become more attractive and affordable on the international market, boosting the industry's exports at an average annual rate of 5.5% to $73.8 million. As the domestic construction segment improves over the five years to 2017, demand for industry products will follow suit. IBISWorld anticipates residential construction will grow at an annualized 12.3% per year while commercial construction grows at 6.5% per year. Revenue for the Fire and Smoke Alarm Manufacturing industry is projected to grow at an annualized rate of 3.8% to $1.7 billion by 2017. However, the US dollar is forecast to appreciate over the period, stifling the industry's export market growth and increasing the affordability of competing imports. Export values are expected to grow at a meager 0.3% per year while imports jump at 4.5% per year on average, accounting for 7.0% of the domestic demand for smoke alarms and detectors.
The Fire and Smoke Alarm Manufacturing industry carries a moderate level of market share concentration. The industry's top firm, Tyco International Ltd., will account for about 44.2% of industry revenue in 2012. The remainder of the industry is made up of firms that will consume no more than 5.0% of industry revenue. Because of its size, Tyco generally dictates the pace of the industry. Over the past five years, Tyco evaded substantial losses that other, smaller firms may have endured thanks to its economies of scale and its longstanding supply contracts with downstream customers. To attain a customer base, many of the smaller firms compete on a local or regional basis. “Additionally, many smaller firms attempt to attract new consumers by offering a range of custom solutions tailored specifically to the client's needs,” says Panteva. These can include audio voice control panels and other reporting systems. Over the next five years, IBISWorld expects industry concentration to decrease slightly as the movement toward growth will attract new firms to enter the industry. For more information, visit IBISWorld’s Fire and Smoke Alarm Manufacturing in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry manufactures fire alarm equipment used for detection in commercial spaces and households.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/12/prweb10234574.htm