Edition: Global Global Select Region
Email: Passwd: or sign up free
One News Page
One News Page > Press Releases > Engine Rebuilding and Remanufacturing in the US Industry Market Research Report Now Available from IBISWorld
Open news article

Engine Rebuilding and Remanufacturing in the US Industry Market Research Report Now Available from IBISWorld

Wednesday, 23 May 2012

The Engine Rebuilding and Remanufacturing industry experienced large jumps in revenue during the recession. When consumers have less disposable income, they are more likely to rebuild or remanufacture an engine instead of buying a new vehicle. However, as the economy has rebounded and disposable income has increased, more consumers are buying new cars. This trend has lowered the average age of the national vehicle fleet, thus leading to less need to rebuild or remanufacture an engine. For these reasons, industry research firm IBISWorld has added a report on the Engine Rebuilding and Remanufacturing in the US industry to its growing industry report collection.

Los Angeles, CA (PRWEB) May 23, 2012

The Engine Rebuilding and Remanufacturing industry operates countercyclical to the economy as a whole. When consumer spending is strong, demand tends to fall because motorists will be more likely to replace worn out vehicles rather than extend their useful life through rebuilding and remanufacturing (R&R) services. Alternatively, when consumer spending is weak, R&R demand generally increases because such services constitute a cheaper alternative to outright vehicle replacement. This latter condition is expected to benefit the industry at an annualized rate of 4.8% during the five years to 2012. Engine R&R firms are largely small, independent ventures operating as stand-alone enterprises or as part of a larger automotive services garage. According to IBISWorld industry analyst Josh McBee, “The flexibility of existing mechanics to add or remove R&R services to their offerings makes the industry relatively porous, so key characteristics tend to move in line with overall demand more drastically than other industries that enjoy more consistent levels of demand.” In general, per capita disposable income, the average age of the vehicle fleet and gas prices help determine demand for R&R work. Most recently, rising disposable income from recessionary lows is expected to decrease the age of the vehicle fleet, as consumers return to buying new cars. As such, revenue from R&R is expected to fall 6.2% in 2012, eventually settling at an estimated $2.2 billion.

Revenue declines are forecast to continue for this mature industry. As revenue falls, profit will remain hindered by persistently high steel prices, which raise operating costs through higher prices paid for parts, tools, machinery and raw inputs. "Without trade to bolster sales, operators will rely on improved operational efficiencies to salvage their profit in the wake of falling demand from downstream markets consisting of consumers, businesses and the government," says McBee. As such, IBISWorld forecasts Engine Rebuilding and Remanufacturing industry revenue to fall during the five years through 2017.

The industry exhibits a low degree of market share concentration. Concentration is expected to decrease during the five years to 2012 as new firms enter the industry in light of high demand for R&R services. The Great Recession limited consumer spending, while high gas prices at the same time pressured vehicle owners seeking to replace inefficient cars with newer ones. For some, R&R services provided a viable way to prolong the useful life of their vehicle without spending as much as the cost of a brand new or used replacement. Market share concentration is expected to increase somewhat, as recent entries into the industry will likely exit in light of lowered demand in the wake of falling unemployment and renewed spending activities. For more information, visit IBISWorld’s Engine Rebuilding and Remanufacturing in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

Companies in this industry primarily rebuild and remanufacture automotive engines and engine parts for motor vehicles. Remanufacturing is the process of returning a used, worn out engine to as close to new as possible, whereas rebuilding generally describes a process that makes greater use of serviceable parts rather than new ones. Recycling, repairs and restorations are excluded from the industry.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s 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.
Share on FacebookShare on Twitter Comment

Recent related news

Open news article

Auto Mechanics in Canada Industry Market Research Report Now Available from IBISWorld

Improved disposable income will boost demand for auto mechanics. For this reason, industry research firm IBISWorld has updated a report on the Auto Mechanics...
PRWeb 8 hours ago - Press Releases

You Might Like

Other recent news in Press Releases

Amazon.com Announces FIRST QUARTER Sales up 23% to $19.74 BillionMead Johnson Reports Strong First Quarter Earnings; Delivers 11 Percent Constant Dollar SALES Growth; And Increases Annual Guidance
UNITED Community Banks, Inc. Reports Earnings of $15.4 Million for First Quarter 2014Universal Health Services, Inc. Reports 2014 First Quarter Financial Results And Acquisition Of Behavioral Health Care Facility In WASHINGTON, D.C.
Host ANALYTICS More Than Doubles New Annual Recurring Revenue (ARR) in Record First QuarterA.M. Best Assigns Ratings to United National Casualty INSURANCE Company
Weather Insurance Brokerage Firm, Spectrum Weather And Specialty Insurance Joins FLORIDA Federation Of Fairs And Livestock ShowsPaul McCartney Tickets in Lubbock, TEXAS at the United Spirit Arena: Ticket Down Slashes Paul McCartney Ticket Prices in Lubbock, TX at the United Spirit Arena
Chicago Blackhawks, St. Louis Cardinals, BOSTON Bruins, New England Patriots, Tampa Bay Rays Lead Bloomberg Businessweek’s “Smartest Spenders in Sports” 2014 RankingMobile ADVERTISING Global Trends Revealed in Smaato Mobile RTB Report



comments powered by Disqus

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2014 One News Page Ltd. All Rights Reserved.  |  About us  |  Press Room  |  Terms & Conditions  |  Privacy Policy  |  Content Accreditation
One News Page - Top Headlines RSS Feed RSS  |  News for my Website  |  Free news search widget  |  Advertise  |  Help  |  Contact us  |  DMCA / Content Removal
How are we doing? Send us your feedback  |  One News Page on Facebook LIKE us on Facebook  One News Page on Twitter FOLLOW us on Twitter  One News Page on Google+ FIND us on Google+

Bullet: One News Page official news app for iPhone Bullet: Our news app for iPhone