Fraying fortunes: Fluctuating raw material prices have increased pressure on operators

Wires, chains and springs are used either as products themselves or as components in other products. UK manufacturers tend to focus on high-value niche markets as imports dominate cheaper products. The industry is heavily dependent on demand from downstream construction, motor vehicle and aerospace manufacturers. Low demand from construction markets at the start of the past five-year period caused industry revenue to fall by 9.7% in the base year, 2014-15. Demand from key markets has improved since then, which has slowed the pace of revenue decline. However, import competition has remained high and subdued demand from oil and gas extractors has weighed on industry performance over the past five years. Overall, revenue is expected to fall at a compound annual rate of 2.4%...read more.

Industry Statistics & Market Size
Revenue
£953.8m
Annual Growth 15-20
-2.4%
Forecast Growth 20-25
Profit
Employment
7,648
Businesses
392

Industry Threats & Opportunities

  • Import competition and weak demand from oil and gas extractors has weighed on the industry
  • Infrastructure construction markets have remained strong, helping to limit industry revenue decline
  • Spending on infrastructure, as governments seek to replace high-emitting power stations, will increase demand
  • Industry Report - Industry Investment Chapter

    The industry has a moderate level of capital intensity. Applying wages as proxy for labour and depreciation for capital investment, the industry is estimated to have a capital-to-labour ratio of 1:6.29 in 2019-20. This indicates that for every £1.00 spent on capital, industry operators will spend approximately £6.29 on wages. Conversely, for every £1.00 spent on wages or labour, firms are expected to spend 16p on capital. At the foundation of these estimations, include IBISWorld’s projections that wages will represent 22% of industry revenue, while depreciation will account for 3.5% of revenue in 2019-20.This is a relatively high-technology industry, involving the use of highly skilled employees for production, sales, research and development. Whi...purchase to read more.

    Additional Insights for the Chain, Spring & Wire Product Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Chain, Spring & Wire Product Manufacturing Industry are

  • Ability to expand and curtail operations rapidly in line with market demand
  • Development of new products
  • Prompt delivery to market
  • IBISWorld analysts also discuss how external factors such as Total value of construction and Industrial production index in the Chain, Spring & Wire Product Manufacturing industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Chain, Spring & Wire Product Manufacturing Industry?

    Companies in this industry manufacture chain, spring and wire products, including various types of wire fencing and netting. The production of clock or watch springs and cables designed to transmit electricity is not included in the industry.

    Industry Products
  • Welded and woven wire grill, netting and fencing
  • Stranded wire, rope and cable
  • Other wire
  • Springs
  • Chain
  • Industry Activities
  • Manufacturing metal cables, plaited bands and similar articles
  • Manufacturing uninsulated metal cables or insulated cables not capable of use as electricity conductors
  • Manufacturing coated or cored wire
  • Manufacturing articles made from wire
  • Manufacturing coated electrodes for electric arc welding
  • Manufacturing nails and pins
  • Manufacturing springs
  • Manufacturing chains
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total value of construction
  • Industrial production index
  • MSCI World Index
  • World price of crude oil
  • World price of steel

  • Current Performance
  • Constrained performance
  • Springing construction
  • Import competition
  • Employment trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Domestic demand
  • Trading on
  • Still energetic
  • Developing economies
  • Table: Chain, Spring & Wire Product Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Chain, Spring & Wire Product Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Iron & Steel Manufacturing
  • Copper Production
  • Other Non-Ferrous Metal Production

  • Key Selling Industries
  • Agriculture, Forestry and Fishing
  • Fastener & Screw Machine Product Manufacturing
  • Manufacturing
  • Mattress Manufacturing
  • Mining and Quarrying
  • Motor Vehicle Manufacturing
  • Other Furniture Manufacturing
  • Tyre Manufacturing

  • Products & Services
  • Stranded wire, rope and cable
  • Welded and woven wire grill, netting and fencing
  • Springs
  • Other wire
  • Chain
  • Chart: Chain, Spring & Wire Product Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Construction
  • Mining, oil and gas extraction
  • Other

  • Major Markets
  • Construction sector
  • Other manufacturers
  • Transportation equipment manufacturers and suppliers
  • Mining, oil and gas extraction industries
  • Agriculture and forestry industries
  • Furniture manufacturers
  • Chart: Major Market Segmentation for the Chain, Spring & Wire Product Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitHowever, profitability varies greatly between firms in the industry. Increases in raw material costs are usually passed on to customers but occasionally industry operators choose to absorb a proportion of the change to maintain their client base. This can adversely affect profitability. WagesPurchasesOther
  • Chart: Cost Structure Benchmarking – Sector vs Chain, Spring & Wire Product Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Chain, Spring & Wire Product Manufacturing Industry

  • Industry Globalization
    BRC Ltd, Bridon International Limited,
  • Table: BRC Ltd - financial performance
  • Table: Bridon International Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Chain, Spring & Wire Product Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Chain, Spring & Wire Product Manufacturing Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Petrochemical
  • A chemical product derived from petroleum.
  • Torsion Spring
  • A spring that works by torsion or twisting. The amount of force (or torque) it exerts is proportional to the amount it is twisted.
  • Wire Drawing
  • The process by which the wire is stretched and shaped.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Chain, Spring & Wire Product Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Chain, Spring & Wire Product Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Chain, Spring & Wire Product Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Chain, Spring & Wire Product Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Would you like to speak to an IBISWorld representative?

    clear