|Page (1) of 1 - 03/06/12||email article||print page|
Communication Equipment Manufacturing in the US Industry Market Research Report Now Available from IBISWorld(March 06, 2012)
Los Angeles, California (PRWEB) March 06, 2012
The Communication Equipment Manufacturing industry, which produces radio, TV and mobile phone broadcasting equipment, began its recovery in 2010 after a disappointing 2009, when revenue declined by 17.6% due to plummeting consumer spending and business profit. Corporations delayed upgrades to wireless and broadcast infrastructure at this uncertain time, contributing to the dip in revenue. Under these adverse conditions, IBISWorld estimates that revenue declined at an average annual rate of 0.4% from 2007 to 2012, but it expects revenue to recover by 5.4% in 2012 to total $40.0 billion. The industry is continually adapting to new technologies and further developing the technology it uses, IBISWorld industry analyst Justin Waterman said. Innovations, along with increasing demand from consumers for new services and devices, are major drivers of industry demand. While local companies are often at the forefront of innovation in this industry, many domestic firms have their products manufactured outside the United States, where costs are lower. The persistent rise of industry imports during the past five years has threatened domestic manufacturers. Imports are expected to grow at an average annual rate of 8.3% per year since 2007 to $66.3 billion in 2012. Some industry companies have relocated and others will continue to outsource or offshore production from the United States to countries where wage costs are low (such as Mexico and China).
Since 2007, the economic downturn and increased import competition resulted in industry consolidation, Waterman said. Major players such as Harris have acquired small competitors, and large companies such as Alcatel and Lucent have merged to stay afloat in the increasingly competitive global economy. Consolidation led to decreased employment. During the five years to 2012, employment in the Communication Equipment Manufacturing industry is expected to decline at a 1.4% annualized rate to 86,396. This decline is also due to manufacturing (and required personnel) moving abroad.
Through 2017, the industry's revenue is projected to grow. Domestic demand for industry products is forecast to grow, but a loss of market share in domestic and export markets will limit industry growth. US operations will continue shifting from manufacturing to the service sector, with companies in this industry offshoring and outsourcing production abroad while focusing on systems development, installation, upgrades and maintenance. The two major companies in this industry are Alcatel-Lucent and Harris Corporation. Several other companies have impacts in this industry, including Garmin Ltd., Apple Inc. and Nokia Corporation. For more information, visit IBISWorlds Communication Equipment Manufacturing report in the US industry 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 includes companies primarily engaged in manufacturing broadcasting and other wireless communications equipment. Examples of such equipment include antennas, set top boxes, GPS systems, cell phones, satellite uplink technologies and radio and TV broadcasting equipment.
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 nations 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.
Read the full story at http://www.prweb.com/releases/2012/3/prweb9255561.htm.
Related Keywords:computing and information technology, satellite technology, wireless technology, science and technology, technology (general), identification technology, agricultural research and technology, fishing industry, electricity production and distribution, cinema industry, radio industry, television industry, music industry, manufacturing and engineering, machine manufacturing, process industry, industrial production, computing and information technology, satellite technology, wireless technology, company information, science and technology, technology (general), identification technology, agricultural research and technology, engineering, instrument engineering, heavy engineering,