Pumping Profits - Pump Sales Benefit from Expanding Industrial Economy and New Building Construction

NEW YORK, Oct. 12 /PRNewswire/ -- MarketResearch.com, the premiere business intelligence marketplace, announced the release of a new study "Pumps" by Specialists in Business Information. According to the study, U.S. pump sales have accelerated along with the current economic expansion, benefiting from rising industrial output that increased pump purchases for plant capitol projects and manufacturer product inputs.

Also, stronger gains in new building construction activity have increased pump sales in this key end-use market. U.S. pump market sales are forecast to increase at a 6.2% compound annual rate over the next five years and market sales are projected to climb to $13.4 billion by 2005.

"So far, the strongest growing pump market sector on a dollar basis has been reciprocating pumps", said Claire Madden, VP of marketing at MarketResearch.com, "but with rising energy prices boosting oil and gas drilling activity, look for oil well and oil field pumps to be the strongest growing sector in this industry".
Stronger market sales gains, however, have contributed to increased competitive pressures. The number of U.S. based manufacturers of industrial and commercial pumps have risen to 670 in 2000. This is up from 623 manufacturers in 1997. These rising competitive pressures have resulted in weakening product price gains, yet margins improved due to a concerted industry-wide effort to improve labor productivity. This was accomplished by manufacturers reducing employment levels and from moderating hourly wage rate gains. Major manufacturers also contributed to improved industry efficiency through a series of significant mergers and acquisitions in the 1990's. The study shows that even though there has been a drop in the average price per unit sold in many of the major pump categories, the business has managed to grow steadily through an industry-wide effort of reducing costs at the manufacturing level. This growth is expected to sustain as industrial, commercial, construction, and drilling enterprises continue to expand worldwide.