Industry Analysis & Industry Trends
In the five years to 2014, a revival in US industrial output and strong demand from downstream customers has helped increase the Hose and Belt Manufacturing industry's revenue. Much of this growth, however, is the result of the industry rebounding from sharp recessionary lows, as high unemployment and falling consumer spending led to fewer factory orders and a striking slowdown in the automobile industry. In the five years to 2019, continued improvement in downstream markets, especially US oil and gas E&P, will lead to higher demand for industry products. Additionally, increased automotive demand from emerging economies will help industry exports. However, anticipated slight price pressures from inputs such as plastic and rubber may temper industry growth... 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 $0.12 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 17.6% in 2009 to 13.8% in 2014.
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