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During the five years to 2014, improving disposable incomes, rising gun purchases and low confidence in banks have driven demand for products in the Safe and Vault Manufacturing industry, however, in the five years to 2019, industry growth is projected to slow down due to increasing import penetration, although household safety concerns, gun ownership and commercial and banking activity will continue to underpin demand. For these reasons, industry research firm IBISWorld has updated a report on the Safe and Vault Manufacturing industry to its growing industry report collection.
New York, NY (PRWEB) July 18, 2014
This industry manufactures safes that are freestanding units, in the form of metal containers, and safes that are built into walls, in the form of vaults. Both, freestanding and vault safes, are typically used to store cash, gold, guns and other valuable or dangerous items and are purchased by households, businesses, banks and customers overseas. In the five years to 2014, improving disposable incomes, rising gun purchases and low confidence in banks has driven demand for Safe and Vault Manufacturing industry products, inducing revenue growth at an estimated 3.1% per year on average. This includes forecast growth of 1.0% over 2014, bringing total revenue to $434.7 million.
According to IBISWorld Industry Analyst Amal Ahmad, The residential market is estimated to account for about half of all sales, as consumers demand home safes, lock boxes, fireproof vaults and gun safes for their residences. Commercial consumers, such as retailers, demand similar items, while banks additionally demand safety deposit boxes and larger doors, locks and components for walk-in vaults. Exports represent another important end market for this industry, with a favorable trade-weighted index and rising global affluence boosting global demand over the past five years. Exports generate an estimated one-third of total industry revenue and primarily go to Mexico and Canada.
Still, the industry faces certain structural challenges including import penetration into the domestic market and rising steel prices, says Ahmad. The operational efficiencies achieved in overseas manufacturing facilities enable those producers, particularly in China, to value safes and vaults at a less-expensive price relative to US producers, even while raw material prices (e.g. steel) have been rising worldwide. Price-based competition has been highest in the market for residential safes, which are often small and lightweight, and for which demand is highly price sensitive. This has squeezed the average operator's profit margin, keeping it at about 4.2% of revenue by 2014.
Going forward, import penetration is expected to intensify, further undermining operator presence in the domestic market. The industry is forecast to become more consolidated over the period and to introduce more points of product differentiation, such as improved fire resistant safes and new biometrics-enhanced safes.
For more information, visit IBISWorlds Safe and Vault Manufacturing industry in the US industry report page.
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IBISWorld industry Report Key Topics
The Safe and Vault Manufacturing industry manufactures safes for residential, commercial and banking use. Industry products include freestanding safe containers for storing cash and guns, as well as vault safes built into walls. Services such as safe cracking and repair are excluded from industry operations.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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