US Demand for Power Transmission Components Expected to Grow
US demand for power transmission components is forecast to grow 2.0% yearly in nominal terms through 2023, according to ‘Power Transmission Components: United States,’ a report recently released by Freedonia Focus Reports. Suppliers will benefit from increases in domestic output of durable products such as machinery and motor vehicles that incorporate power transmission components. Durable goods shipments are expected to grow 2.3% per year through 2023. Export opportunities will continue to emerge for high-tech machinery and other products made domestically, which will drive demand for power transmission components. In addition, ongoing technological developments will boost replacement demand for more efficient and higher-priced products. However, rising imports of machinery and other equipment containing power transmission components are expected to continue to restrain demand growth for products manufactured domestically.
Shipments of power transmission components from US factories are projected to rise 1.6% annually through 2023. Increases in manufacturing in both domestic and export markets will support growth in output. Rising industrial output in regions such as Asia fuels demand for US-made machinery. Growth in shipments will lag that of demand due to rising import penetration from manufacturers in Mexico and countries in the Asia/Pacific region.
To illustrate historical trends, total demand; total shipments; the various segments; trade; and US firm, establishment and employment data are provided in annual series from 2008 to 2018.
Excluded from the scope of this report are automotive engine bearings as well as flexure, fluid, and magnetic bearing products. Also excluded are related bearing hardware such as adaptor and withdrawal sleeves, locknuts and washers, lubricators and retaining plates. In addition, certain types of power transmission components (e.g., ball, swivel, and universal joints) for use in aerospace equipment are excluded from the scope of this report, although bearings for aerospace equipment are included in the bearings segment. Re-exports of power transmission components are excluded from demand and trade figures.