Making moves: Widespread automation and increasing input prices will push revenue higher

Despite broad economic growth, the Manufacturing sector faltered during the five-year period to 2018. Manufacturers are reliant on export demand, which slumped for a variety of reasons. A confluence of events, including an appreciating dollar, weak commodity prices and slumping growth in commodity-driven countries lead to falling exports.Over the five years to 2023, the Manufacturing sector is forecast to return to growth. During this period, sector revenue is expected to increase. Firmer commodity prices and continued demand growth, both in the United States and abroad, are anticipated to facilitate persistent expansion for manufacturers...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Manufacturers focused efforts on cutting costs through technological innovation and supply chain risk management systems
  • The manufacturing trade deficit has increased markedly during the period
  • Tariffs are forecast to result in higher domestic steel prices relative to global trends
  • Industry Report - Industry Key Buyers Chapter

    The Manufacturing sector is highly fragmented as a whole due to its sheer size, exhibiting a low level of market share concentration. Subsequently, major players are considered companies commanding 1.0% or more of the market share. In 2018, there are no operators that are expected to account for more than 2.0% of revenue, with many of the largest participating in the Petroleum Refining industry (IBISWorld report 32411). As a whole, the sector is mostly composed of establishments employing fewer than 20 individuals. According to the latest data from Statistics of U.S. Businesses (SUSB), when nonemployer companies are included, 71.5% of establishment employ fewer than five workers. Additionally, only 0.4% of establishments employ 500 or more workers. Thi...purchase to read more.

    Additional Insights for the Manufacturing Industry

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

  • Ability to quickly adopt new technology
  • Guaranteed supply of key inputs
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Trade-weighted index and World price of crude oil in the Manufacturing industry impact industry performance..

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    What's in this report

    What is the Manufacturing Industry?

    The Manufacturing sector includes establishments engaged in the transformation of raw inputs into new products using mechanical, physical or chemical processes. Additionally, assemblage of component parts into new, complex goods is included in this sector, except where they should be considered Construction (sector 23). Goods may be sold directly to end users or to wholesalers for redistribution. Harvesting, extraction, resale and publishing are also not included in this sector.

    Industry Products
  • Food, beverage and tobacco
  • Petroleum, coal. chemicals, plastics and rubber
  • Transportation and machinery equipment
  • Metals and mineral production
  • Computer, electronic and electric products
  • Wood and paper products
  • Textiles, apparel and leather products
  • Industry Activities
  • Food & Beverage
  • Petroleum & Chemical Product
  • Transportation Machinery & Machinery Equipment
  • Metals & Mineral Production and
  • Computer, Electronic & Electric Equipment and Component
  • Wood Product
  • Plastics & Rubber Product
  • Textiles, Apparel & Other Mills and
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Trade-weighted index
  • World price of crude oil
  • Manufacturing capacity utilization
  • US Gross domestic product (GDP)
  • World price of steel

  • Current Performance
  • Diverse products and falling prices
  • The structure of manufacturing
  • Chart: Revenue Growth

  • Industry Outlook
  • Product and trade outlook
  • Process and products
  • Table: Manufacturing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Construction
  • Manufacturing
  • Wholesale Trade
  • Retail Trade

  • Key Selling Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Manufacturing
  • Mining
  • Wholesale Trade

  • Products & Services
  • Petroleum, coal. chemicals, plastics and rubber
  • Transportation and machinery equipment
  • Food, beverage and tobacco
  • Metals and mineral production
  • Computer, electronic and electric products
  • Wood and paper products
  • Other
  • Textiles, apparel and leather products
  • Chart: Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers
  • Other manufacturers
  • Exports
  • Other
  • Retailers
  • Chart: Major Market Segmentation for the Manufacturing Industry

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

  • Basis of Competition
  • Price
  • Product design and durability
  • Brand strength

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

  • Industry Globalization
    Exxon Mobil Corp., General Motors, Ford Motor Company, The Boeing Company, Tyson Foods Inc., PepsiCo Inc., Johnson & Johnson,
  • Table: Exxon Mobil Corp. - financial performance
  • Table: General Motors - financial performance
  • Table: Ford Motor Company - financial performance
  • Table: The Boeing Company - financial performance
  • Table: Tyson Foods Inc. - financial performance
  • Table: PepsiCo Inc. - financial performance
  • Table: Johnson & Johnson - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the 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 Manufacturing Industry
  • 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)
  • US Gross Domestic Product (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Economies Of Scale
  • Cost savings enjoyed by larger operators with additional production volumes. Can be attained using factors such as bargaining power with suppliers.
  • Inventory Management
  • Planning and maintenance of inventory levels, balancing demand and inventory control costs.
  • Offshoring
  • The process of basing some or all of a company's resources abroad to take advantage of favorable operating costs and expand margins.
  • What Our Customers Say

    Why buy this report?

    The Manufacturing Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

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

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