Free fall: Foreign demand will remain strong, but declining US military spending will hurt revenue

The Parachute Manufacturing industry experienced shaky performance over the past five years. Initially, continued US combat operations in the Middle East led to a surge in military demand for industry products. In addition, as the economy recovered from the recession, per capital disposable income increased, enabling more consumers to spend money on recreational activities such as skydiving. However, in recent years, the industry has hit turbulence. Over the five years to 2021, industry revenue is expected to fall. Most of the revenue decline is projected to be in 2017, when the surge in export orders settles down, while US military spending on parachutes continues to fall...read more.

Industry Statistics & Market Size
Revenue
$378m
Annual Growth 11-16
4.0%
Forecast Growth 16-21
Profit
Employment
1,602
Businesses
27
Market Share of Companies
What Our Customers Say

Industry Threats & Opportunities

  • Strong export growth is expected to help offset declining domestic demand
  • The decreased tempo of operations in Afghanistan caused a plunge in demand for parachutes
  • As incomes rise, more consumers will go skydiving, driving commercial demand for parachutes
  • Industry Report - Industry Key Buyers Chapter

    The Parachute Manufacturing industry has a low level of concentration, with the top four players holding less than an estimated 30.0% market share. Because a significant portion of industry revenue is derived from defense contracts, market share tends to vary from year to year, depending on which companies are awarded the contracts. In addition, market share can shift based on companies' new technology and innovative products. For instance, when the military increased its demand for low-velocity cargo parachutes, companies carrying such products first were able to gain market share. However, as domestic military demand fell over recent years, manufacturers too focused on this market lost market share...purchase to read more.

    Additional Insights for the Parachute Manufacturing Industry

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

  • Proximity to key suppliers
  • Economies of scale
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Federal funding for defense and NATO defense spending in the Parachute Manufacturing industry impact industry performance..

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    What is the Parachute Manufacturing Industry?

    Companies in this industry manufacture parachutes, which are devices used to slow the motion of an object through an atmosphere by creating drag. This industry does not include powered parachutes or manufacturers that primarily produce parachute harnesses or components.

    Industry Products
  • Military parachutes
  • Recreational parachutes
  • Industry Activities
  • Cargo parachute
  • Personnel parachute
  • Space parachute
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for defense
  • NATO defense spending
  • Per capita disposable income
  • Trade-weighted index

  • Current Performance
  • Military demand
  • Other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Unstable demand
  • Other trends
  • Table: Parachute Manufacturing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Sports Coaching
  • Public Administration

  • Key Selling Industries
  • Dye & Pigment Manufacturing
  • Synthetic Fiber Manufacturing
  • Textile Mills

  • Products & Services
  • Military parachutes
  • Recreational parachutes
  • Other
  • Chart: Parachute Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • US and global defense spending
  • Recreation

  • Major Markets
  • Exports
  • Recreational market
  • Department of Defense
  • Other
  • Chart: Major Market Segmentation for the Parachute Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Parachute Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Airborne Systems, Ltd.
  • Table: Airborne Systems, Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Parachute 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 Parachute Manufacturing Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Exports (2007-2021)
  • Imports (2007-2021)
  • Wages (2007-2021)
  • Federal funding for defense (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Airdrop
  • The delivery of cargo or personnel by parachute from an aircraft in flight.
  • Department Of Defense (Dod)
  • The federal department charged with coordinating and supervising agencies and functions relating to national security and the US armed forces.
  • Global Positioning System (Gps)
  • A navigational system involving satellites and computers that can determine the latitude and longitude of a receiver on Earth.
  • Joint Precision Airdrop System (Jpads)
  • An American military airdrop system that uses GPS.
  • Nasa
  • An independent agency of the US government responsible for aviation and spaceflight.
  • Why buy this report?

    IBISWorld’s industry research report on Parachute Manufacturing provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

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

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