Flickering light: Infrastructure upgrades will spur demand, though imports will dim growth

Over the five years to 2018, the Electrical Equipment Manufacturing industry was forced to contend with increased international competition and the lingering effects of the sluggish economic recovery. While import penetration continues to negatively impact the industry, strong performance from downstream industries will mitigate some of the effects of increasing imports. Consequently, industry revenue is expected to decline marginally. Increasing import penetration has led to plant closures and consolidations, as some domestic operators have been unable to compete with less-expensive imports. Expected upgrades in infrastructure are anticipated to stimulate demand for industry products over the five years to 2023...purchase to read more.

Industry Statistics & Market Size
Revenue
$41bn
Annual Growth 13-18
-0.8%
Forecast Growth 18-23
Profit
Employment
110,411
Businesses
2,112

Industry Threats & Opportunities

  • Many domestic companies have offshored production operations to lower-wage countries
  • Surging import penetration is partially due to offshoring of production
  • Anticipated increases in federal investment in transmission infrastructure will boost industry demand
  • Industry Report - Industry Investment Chapter

    The Electrical Equipment Manufacturing industry has a low level of capital investment, as many capital-intensive activities have been offshored. For every $1.00 spent on wages, it is estimated that industry manufacturers will spend $0.04 on capital investment. Operators spend the majority of their capital investment on new machinery and other operational equipment.Capital expenditures remained steady in this industry in recent years due to a consolidation of plants and a shift in production capacity to low labor cost countries. Labor costs are high in this industry compared with other manufacturers, accounting for an estimated 17.1% of revenue. This industry requires relatively skilled labor, which contributes to the increasing average wage costs. Hig...purchase to read more.

    Additional Insights for the Electrical Equipment Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Electrical Equipment Manufacturing Industry are

  • Business expertise of operators
  • Adoption of latest available and most efficient technology and techniques
  • Access to high quality inputs
  • IBISWorld analysts also discuss how external factors such as Value of private nonresidential construction and Demand from building, developing and general contracting in the Electrical Equipment Manufacturing industry impact industry performance..

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    What's in this report

    What is the Electrical Equipment Manufacturing Industry?

    This industry manufactures power, distribution and specialty transformers; electric motors, generators and motor-generator sets; switchgear and switchboard apparatus; relays; and industrial controls. Electrical equipment manufacturers sell their products to other manufacturing industries, wholesalers and the construction sector.

    Industry Products
  • Relays and industrial controls
  • Switches
  • Motors and generators
  • Transformers
  • Industry Activities
  • Manufacturing switchgear
  • Manufacturing switchboard apparatus
  • Manufacturing electric motors and generators
  • Manufacturing relays
  • Manufacturing industrial controls
  • Manufacturing power, distribution and specialty transformers
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of private nonresidential construction
  • Demand from building, developing and general contracting
  • Industrial production index
  • Trade-weighted index

  • Current Performance
  • Profit pressures and consolidation
  • International expansion
  • Investment trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Federal investment
  • Downstream demand
  • International trade
  • Table: Electrical Equipment Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Electrical Equipment Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Heavy Engineering Construction
  • Construction Machinery Manufacturing
  • Semiconductor Machinery Manufacturing
  • Printing, Paper, Food, Textile & Other Machinery Manufacturing
  • Engine & Turbine Manufacturing
  • Wind Turbine Manufacturing
  • Power Tools & Other General Purpose Machinery Manufacturing
  • Electronic Part & Equipment Wholesaling

  • Key Selling Industries
  • Iron & Steel Manufacturing
  • Metal Wholesaling
  • Metalworking Machinery Manufacturing
  • Screw, Nut & Bolt Manufacturing
  • Wire & Spring Manufacturing

  • Products & Services
  • Switches
  • Relays and industrial controls
  • Motors and generators
  • Transformers
  • Chart: Electrical Equipment Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Construction
  • Manufacturers
  • Utilities
  • Businesses
  • Chart: Major Market Segmentation for the Electrical Equipment Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Electrical Equipment Manufacturing

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Electrical Equipment Manufacturing Industry

  • Industry Globalization
    General Electric Company, Eaton Corporation PLC, Schneider Electric SE,
  • Table: General Electric Company - financial performance
  • Table: Eaton Corporation PLC - financial performance
  • Table: Schneider Electric SE - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Electrical Equipment Manufacturing 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 Electrical Equipment Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Electric power consumption (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Brownout
  • An intentional drop in voltage to prevent a blackout.
  • Generator
  • An engine that converts mechanical energy into electrical energy by electromagnetic induction.
  • Offshore
  • The relocation of a company's business process, such as manufacturing or accounting, from one country to another, whether the work is outsourced or stays within the company.
  • Outsource
  • To procure goods or services under contract with an outside supplier.
  • Relay
  • An electrical device in which current flowing through one circuit can switch a current in a second circuit on and off.
  • Switchgear
  • An electrical apparatus used to open and close circuits; may also include devices that provide protection for apparatus connected to an electrical supply.
  • Transformer
  • An electrical device by which alternating current of one voltage is changed to another voltage.
  • Uninterruptible Power Supply (Ups)
  • An electrical apparatus that provides emergency power to a load when the input power source, typically the utility mains, fails.
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries where producers supply goods directly to stores, eliminating the middleman.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Electrical Equipment Manufacturing is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    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 Electrical Equipment Manufacturing:
    • 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 Electrical Equipment Manufacturing 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 Electrical Equipment Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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