In hot water: New residential construction activity will boost demand for industry products

Water Heater Manufacturing industry operators produce water heaters of various sizes and types, typically powered by either gas or electricity. During the recovery from recessionary lows, the uptick in new residential construction activity boosted demand for industry products, as new houses require new water heaters. The housing market remained strong over the past five years even when the nonresidential market faltered. While the growth of the housing market has served as a catalyst for demand for new water heaters, the industry has also benefited from disposable income growth, increasing consumers' ability to purchase new water heaters. The industry is expected to continue growing over the five years to 2022...purchase to read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 12-17
4.1%
Forecast Growth 17-22
Profit
Employment
4,723
Businesses
15

Industry Threats & Opportunities

  • New residential construction activity boosted demand for industry products
  • While rising demand has benefited the industry's revenue growth, falling input costs have benefited profit margins
  • With unemployment continuing to decline and with a brighter outlook ahead, developers and individuals will invest in new units
  • Industry Report - Industry SWOT Analysis Chapter

    The Water Heater Manufacturing industry is in the mature phase of its life cycle. Industry value added (IVA), a measure of the industry's contribution to overall economic growth, is forecast to rise at a 5.2% annualized rate from 2012 to 2022, compared with average annual GDP growth of 2.0% during the same 10-year period. Although industry growth is expected to exceed that of GDP, much of this stems from the industry's recovery over the past five years on the heels of a protracted contraction. Moreover, the industry's consolidation and limited opportunities for profit growth underscore its mature nature.The overwhelming majority of industry revenue is captured by just a handful of manufacturers, typically representative of a mature industry. IBI...purchase to read more.

    Additional Insights for the Water Heater Manufacturing Industry

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

  • Establishment of brand names
  • Development of new products
  • Market research and understanding
  • IBISWorld analysts also discuss how external factors such as Price of household appliances and Housing starts in the Water Heater Manufacturing industry impact industry performance..

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    What's in this report

    What is the Water Heater Manufacturing Industry?

    This industry manufactures water heaters, which are used in a variety of settings. Most industry products are found in homes, office buildings and industrial facilities. They are made in various sizes and types and are mostly powered by gas or electricity.

    Industry Products
  • Gas storage-tank water heaters
  • Electric storage-tank water heaters
  • Tankless water heaters
  • Other including solar and heat pump water heaters
  • Industry Activities
  • Manufacturing storage-tank water heaters
  • Manufacturing tankless water heaters
  • Manufacturing heat-pump water heaters
  • Manufacturing solar water heaters
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Price of household appliances
  • Housing starts
  • Per capita disposable income
  • Trade-weighted index
  • Price of plastic materials and resin
  • World price of steel

  • Current Performance
  • Housing market drives new demand
  • Export growth and rising import penetration
  • Falling production costs benefit profit margins
  • Industry trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Strong housing recovery spurs growth
  • Energy efficiency becomes key
  • Rising import competition and input costs
  • Table: Water Heater Manufacturing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Home Builders
  • Apartment & Condominium Construction
  • Tool & Hardware Wholesaling
  • Plumbing & Heating Supplies Wholesaling
  • Home Improvement Stores
  • Commercial Building Construction

  • Key Selling Industries
  • Electrical Equipment Manufacturing
  • Hose & Belt Manufacturing
  • Laminated Plastics Manufacturing
  • Metal Pipe & Tube Manufacturing
  • Plastic Pipe & Parts Manufacturing
  • Screw, Nut & Bolt Manufacturing
  • Steel Rolling & Drawing

  • Products & Services
  • Gas storage-tank water heaters
  • Electric storage-tank water heaters
  • Tankless water heaters
  • Other including solar and heat pump water heaters
  • Chart: Water Heater Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Replacement
  • New construction

  • Major Markets
  • Wholesalers
  • Retailers
  • Exports
  • Building contractors
  • Chart: Major Market Segmentation for the Water Heater Manufacturing Industry

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

  • Basis of Competition
    PriceProduct qualityTechnology
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Water Heater Manufacturing Industry

  • Industry Globalization
    A.O. Smith Corp., Rheem Manufacturing Company, Bradford White Corp.,
  • Table: A.O. Smith Corp. - financial performance
  • Table: Rheem Manufacturing Company - financial performance
  • Table: Bradford White Corp. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Water Heater 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 Water Heater Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Housing Starts (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Energy Star
  • An international standard for energy efficient consumer products responsible for ascertaining the energy usage of water heaters.
  • Hybrid Or Heat Pump Water Heater
  • A heating system that uses an air-sourced heat pump to pull heat from the surrounding air into a storage tank to heat water.
  • Point-Of-Use Tankless Heater
  • An electric or gas water heater normally installed in for a specific fixture, such as a sink or shower.
  • What Our Customers Say

    Why buy this report?

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

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