Gear drives and gear motors study predicts $1.5 billion market
Toronto, ON -- A new study from Frost & Sullivan, North American Enclosed Gear Drives and Gear Motors Markets, reve...
Toronto, ON — A new study from Frost & Sullivan, North American Enclosed Gear Drives and Gear Motors Markets, reveals that revenues in this market totalled $1.17 billion in 2005 and projects to reach $1.55 billion in 2012.
Although there is growth of revenues in the market, the profits still remain very low for some of the manufacturers. Many companies are shifting towards better manufacturing techniques and cost-saving production processes, according to the study. The cumulative growth rate for the years 2005 and 2006 is predicted to be approximately 6.5%.
The price of steel is expected to have an upward trend until the end of 2006. With raw material prices going up, the price of manufacturing has also gone up. Owing to this, the price of the products and total revenues of the market have also gone up. The increase in raw material prices in the last few quarters has increased the revenues of the market and is driving the market ahead, although the profit margins remain low.
“Global competitors, particularly from East Europe and East and South Asia, are offering products at a lower price within the North American market,” says Frost & Sullivan mechanical power transmission team leader Bhavdeep Singh Virdee. “Although the quality of the products is not up to the standards of the manufacturers, they are seeking out the large original equipment manufacturers (OEMs) that buy large volumes of units in a single order.”
For details on obtaining the report, visit www.frost.com, or contact the Toronto office at 416-490-1511.