Industry Analysis & Industry Trends
The industry will benefit from a number of positive trends, including renewed building activity and strong demand for electrical equipment. Demand for more efficient electrical equipment that will save energy will also be a major impetus for overall growth. Furthermore, a projected increase in industry exports will bolster wiring device production, priming the industry for a revival in the next five years... purchase to read more
Industry Report - Industry Investment Chapter
Capital expenditure is low in this industry. For every dollar spent on capital, $7.94 is spent on wages. This ratio is lower than the average for all manufacturing industries, mainly because a significant share of the industry's revenue is allocated to wages in the industry. Capital expenditures fell in this industry in recent years due to slower industry growth, a consolidation of plants, and a shift of some production capacity to low-cost countries.
Labor costs are above average in this industry when expressed as a percentage of revenue (an estimated 14.6%); the average of all manufacturing industries is about 10.6%. High labor inputs make this industry susceptible to competition from products imported from foreign countries where wages are low... purchase to read more