Electrical Equipment Manufacturing Industry : The Electrical Manufacturer Industry

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IV. ANALYSIS OF THE ENVIRONMENT ELECTRICAL EQUIPMENT MANUFACTURING INDUSTRY Emerson Electric is in the electrical manufacturer industry. Companies in this industry manufacture electrical equipment, appliances, and electrical components. The major products includes household appliances, communication and energy wire and cable, batteries, lighting equipment, industrial controls, motors and generators, switchgear and switchboard equipment, wiring devices, and transformers(Electrical Products Manufacturing). The industry made $42.6 billion in revenue in 2015 (Isakowitz, 4). Acquainted ECONOMIC TRENDS Advancements in technology strongly drive the demand for electrical products. “US corporate profits, an indicator of corporate demand for electrical products, rose 3.7 percent in the first quarter of 2015 compared to the same period in 2014” (Electrical Products Manufacturing). US personal income has also risen, which increases demand for electrical products. As a result of the personal income elevation, demand for electrical products rose 6.4% in May of 2015 (Electrical Products Manufacturing). Revenue in the industry is projected to increase at an average annual rate of 1/7% over the next five years. Domestic manufacturers in the US have lost market share to imports, which increased from 45.8% of domestic demand in 2010 to 50.8% in 2015 (Isakowitz, 8), The penetration of imports is in part because of the low labor costs provided by offshoring. Increased production costs have

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