Going upStill climbing: As the value of private nonresidential construction rises, industry demand will increase

The Elevator Installation and Service industry's performance is heavily dependent on investment in construction, new capital equipment and overall health of the economy. Over the past five years to 2018, the industry has grown as construction markets picked up early during in the period. Early in during the five-year period, the industry experienced strong growth due to recoveries across key construction markets as well as a spike in corporate profit. As corporate profit declined later in during the period and private investment in manufacturing facilities fell, industry revenue growth halted as well. Repair and maintenance contracts provide an important cushion for many operators as all products require this service and it generally cannot be put off...purchase to read more.

Industry Statistics & Market Size
Revenue
$21bn
Annual Growth 13-18
0.7%
Forecast Growth 18-23
Profit
Employment
106,184
Businesses
19,788

Industry Threats & Opportunities

  • The industry experienced strong growth due to recoveries across key construction markets
  • Expansion in the residential construction market contributed to the widening of demand for industry services
  • A continued expansion in construction markets and improving economic conditions will enable the industry to continue growing
  • Industry Report - Industry Investment Chapter

    The Elevator Installation and Service industry is characterized by a low level of capital intensity. The industry is service-oriented and thus relies on the skills and knowledge of individual contractors rather than the capabilities of heavy equipment. In 2018, IBISWorld estimates that industry operators will spend $0.04 on capital for every dollar spent on labor. Moreover, wages comprise one of the largest cost segments for the industry at an estimated 33.3% of total revenue, while depreciation accounts for a very small portion of revenue at just 1.3%. Start-up capital expenses are largely limited to materials purchases and rudimentary tools, such as basic lifting equipment and power tools. Ent...purchase to read more.

    Additional Insights for the Elevator Installation & Service Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Elevator Installation & Service Industry are

  • Upstream vertical integration (ownership links)
  • Access to secure revenue
  • Ability to compete on tender
  • IBISWorld analysts also discuss how external factors such as Private investment in manufacturing structures and Corporate profit in the Elevator Installation & Service industry impact industry performance..

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    What's in this report

    What is the Elevator Installation & Service Industry?

    This industry comprises establishments primarily engaged in one or more of the following activities: the installation or dismantling of elevators, escalators and moving walkways; machine rigging; and millwrighting; and modernization and maintenance of products installed (which include: elevators, dumbwaiters, escalators, conveyor systems and automated revolving doors).

    Industry Products
  • Elevator installations
  • Elevator maintenance and repair services
  • Escalator installation, maintenance and repair services
  • Millwright contracting and machine rigging services
  • Other installation, maintenance and repair services
  • Industry Activities
  • Elevator installation and maintenance
  • Escalator installation and maintenance
  • Moving walkway installation
  • Millwrighting
  • Conveyor-system installation
  • Machine rigging
  • Automated and revolving-door installation
  • Dumbwaiter installation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Private investment in manufacturing structures
  • Corporate profit
  • Value of private nonresidential construction
  • Consumer spending
  • Price of steel

  • Current Performance
  • Going up
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Construction expansion
  • Steady growth
  • Table: Elevator Installation & Service Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Elevator Installation & Service Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Apartment & Condominium Construction
  • Industrial Building Construction
  • Forklift & Conveyor Manufacturing
  • Power Tools & Other General Purpose Machinery Manufacturing
  • Real Estate and Rental and Leasing
  • Property Management
  • Public Administration
  • Commercial Building Construction
  • Municipal Building Construction

  • Key Selling Industries
  • Construction
  • Construction & Mining Equipment Wholesaling
  • Printing, Paper, Food, Textile & Other Machinery Manufacturing
  • Professional, Scientific and Technical Services
  • Semiconductor Machinery Manufacturing

  • Products & Services
  • Other installation, maintenance and repair services
  • Elevator installations
  • Elevator maintenance and repair services
  • Millwright contracting and machine rigging services
  • Escalator installation, maintenance and repair services
  • Chart: Elevator Installation & Service Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Manufacturing and industrial buildings
  • Nonbuilding construction
  • Office buildings
  • Healthcare, public safety and educational buildings
  • Residential construction
  • Retail and storage spaces
  • Other
  • Chart: Major Market Segmentation for the Elevator Installation & Service Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Elevator Installation & Service

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Elevator Installation & Service Industry

  • Industry Globalization
    Kone Corporation, United Technologies Corporation, ThyssenKrupp AG,
  • Table: Kone Corporation - financial performance
  • Table: United Technologies Corporation - financial performance
  • Table: ThyssenKrupp AG - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Elevator Installation & Service Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Elevator Installation & Service Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Corporate Profit (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Building Automation
  • Typically involves the installation of a computerized control system (intelligent network) that monitors and controls the mechanical and lighting systems in a building.
  • Elevator
  • A vertical transport vehicle that moves people and/or goods between floors of a building.
  • Escalator
  • A moving staircase conveyor transport device designed for moving large numbers of people between floors. Widely used in shopping malls, on transit systems and in public buildings.
  • Millwright
  • A certified trade occupation involving the installation, replacement, dismantling and repair of machinery and heavy equipment.
  • Nonemployer
  • An establishment without payroll employees, typically a sole proprietorship or partnership.
  • What Our Customers Say

    Why buy this report?

    The Elevator Installation & Service industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Elevator Installation & Service:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Elevator Installation & Service market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Elevator Installation & Service, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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