For this month’s industry report, we’re going to focus on an industry that’s anticipated to grow over the next five years: power conversion equipment manufacturing in the United States.
The industry includes companies that manufacture laser systems, electrical power conversion equipment, and carbon and graphite products.
Examples of products manufactured by this industry are: rectifiers, uninterruptible power supplies, electronic systems and equipment, and extension and electrical equipment cords.
State of the Industry: Current & Future
From 2013-2018, the power conversion equipment manufacturing industry did not experience a high degree of growth; per a May 2018 report by Viraj D’Costa at IBISWorld, it only grew at a rate of 0.6% per year.
But the next five years may look a bit different.
The power conversion equipment manufacturing industry serves a few key B2B markets which are expected to fare well from now until 2023: electrical equipment manufacturers, appliance manufacturers, component manufacturers, and private nonresidential construction.
Since these industries may grow, demand will be higher than it was the previous five years.
The power conversion equipment manufacturing industry also is heavily influenced by consumer spending and has a wide B2C customer base. Over the next five years, consumer spending is also due to increase since the U.S. economy is expected to grow.
As a result, IBISWorld predicts that the annualized growth rate for this industry will rise to 1.7% per year from 2018-2023, reaching a revenue of $17.6 billion.