Engine & Turbine Manufacturing in the US
The Engine and Turbine Manufacturing industry includes diesel truck engines, power transmission turbines and industrial transmissions. Over the five years to 2018, the industry has declined due to a sharp drop in oil prices in both 2015 and 2016 resulting in a subsequent decline of the utilities sector. As oil prices fell to historic lows, so did incentives to adopt fuel-efficient engines and power generation systems; in turn, demand from truck transportation and private investment in industrial equipment and machinery declined. Additionally, exports decreased substantially as demand from commodity-reliant economies slowed. International trade in diesel engines and utility turbines comprises a significant portion of industry revenue. However, exports sharply declined in 2015 as a stronger US dollar and a declining utilities sector hampered demand. At the same time, imports have undercut domestic demand for US-produced goods as foreign manufacturers operate with lower wage costs and experience less government oversight in their respective nations. Over the five years to 2023, greater overall truck transportation in the United States will drive domestic diesel engine sales.
Operators in this industry manufacture turbines and equipment used for power transmission, such as generators, as well as diesel engines for highway vehicles and heavy-duty equipment. Parts and accessories are included, but wind turbines are excluded from this industry (see IBISWorld report 33361b).
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.