Industry Analysis & Industry Trends
The Hose and Belt Manufacturing industry sells belts for conveyers and fluid transfer hoses used by heavy-industry operators, such as miners and manufacturers, as parts for equipment. From 2010 onward, a revival in US manufacturing and strong revenue growth from key customers, including auto manufacturers and oil and natural gas exploration and production (E&P) companies, aided industry revenue growth. In the coming years. continued improvement in downstream markets, especially the on-and-off highway vehicle manufacturing and replacement markets, will lead to higher demand for industry products... purchase to read more
Industry Report - Industry Investment Chapter
The Hose and Belt Manufacturing industry has a low level of capital intensity. For every dollar spent on labor, the industry spends $0.10 on capital. Industry manufacturers convert plastic resin and natural rubber into belts and hoses through an extrusion process. To reduce fixed costs per unit of output, manufacturers use a high-volume mechanized production line. Consequently, wage costs as a percent of industry revenue declined from 16.3% in 2010 to 15.5% in 2015.
Depreciation mainly relates to buildings and machinery used in the production process. Because of the specialized nature of the hose and belt products manufactured by this industry, most facilities have a number of short production lines that must be periodically retooled to manufacture different products... purchase to read more