US demand to expand 3% annually through 2013 Bearing demand in the US (includingplain bearings) is projected to expand 3.0percent per year through 2013 to $10.6billion. The primary factors supportingadvances will be a rebound in motorvehicle production levels and continued,albeit moderating, growth in aerospaceequipment and machinery shipments. Inaddition, as the wind energy marketcontinues to grow, suppliers will benefitfrom sales of high-value, large diameterwind turbine bearings. Market gains willbe dampened by a deceleration in overalldurable goods output as US companiescontinue to move manufacturing operationsto offshore areas where labor costsare lower. Significant increases inaverage bearing life, attributable to theuse of improved product designs, betterqualitymaterials and better lubricants,will also restrain growth in aftermarketsales. However, a shift in the product mixtoward more expensive, better performingproducts will provide a counterbalance,supported in part by high energyprices that will make highly efficientbearings a more attractive investment.
Improved quaiity, performance to boost shipments Shipments of bearings from US plants areexpected to expand 2.8 percent annuallythrough 2013 to $10.0 billion, approximatingdomestic demand increases.Industry output will be stimulated bygrowth in several key domestic bearingusingindustries and by rising demand ina number of export markets. Furtherinvestment in US bearing plants byforeign firms will contribute to productiongains as well. US bearing manufacturers’ongoing efforts to improve thequality and performance of their products,and to increase the efficiency oftheir operations, will also help spuroutput growth, as will a trend fromselling simple components to sellingmore advanced, higher value addedsystems that incorporate bearings andassociated components. However, foreignsuppliers are also improving the qualityof their goods, and US-based bearingcompanies are expected to make additionalinvestments in overseas manufacturingfacilities, limiting advances indomestic industry production.
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Roller bearings to post strongest market gains The strongest market gains through 2013will be posted by roller bearings, benefittingfrom renewed strength in USproduction of motor vehicles and fromsales of advanced, high-value productsfor applications such as wind turbinesand heavy machinery. Demand formounted bearings and bearing parts willalso outperform bearing demand overall.Sales of bearing parts will be driven byincreases in the number of bearingcontainingproducts (aircraft, automobiles,industrial equipment, etc.) in useand by demand for the improved performanceassociated with more advancedparts. Mounted bearing demand increaseswill be spurred by original equipmentmanufacturers’ (OEM) desire to simplifytheir production process and reducefuture maintenance requirements.
OEM bearing applications, whichcurrently account for 78 percent of alldemand, will approximate the performanceof maintenance/repair/operations(MRO) applications through 2013.Market conditions will be particularlystrong in the automotive and engine,turbine and power transmission equipmentmanufacturing markets. MRObearing demand will be bolstered bycontinued increases in governmentspending and by a rebound in residentialconstruction expenditures.
Study coverage This new Freedonia industry study,Bearings, is priced at $4800. It presentshistorical demand data (1998, 2003 and2008) plus forecasts for 2013 and 2018by product and market. The study alsoconsiders market environment factors,assesses US industry structure, evaluatescompany market shares and profiles 32industry competitors.
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