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In the five years to 2013, despite the economic recession and its impact on the general economy, nondestructive testing (NDT) industry revenue grew an estimated 5% per year (on average) to $966.8 million, according to a new report from IBISWorld. “Although there was less new construction and many projects were stalled over the five-year period, the need for compliance with government safety regulations helped mitigate industry revenue declines relating to construction site inspections,” said Jeremy Edwards, industry analyst.
However, the industry was not completely immune to the recession and revenue declined 3.4% in 2009. The recession caused some industrial plants in the industry to close, and forced others to postpone or reduce maintenance expenditures. Nonetheless, industry revenue rebounded in 2010 and has continued to grow since. Demand from oil and gas extraction companies has reportedly assisted this strong growth. IBISWorld estimates revenue will increase 7% in 2013, driven by rising industrial activity that will require NDT services.
“The industry’s rapid expansion will continue in the five years to 2018,” Edwards said. Continuing technological innovation is expected to make NDT services more cost effective and efficient for end users, thus boosting demand for industry services. Greater demand will, in turn, lure more entrants into the industry. The industry will also continue to consolidate as large firms seek to expand their geographic reach and enter niche markets by acquiring smaller firms.
For more information, visit www.ibisworld.com.