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United States Maintenance, Repair, and Operations (MRO) Market 2021-2026: Facility MRO Services Expected to Show Significant Growth
Saturday, November 27, 2021
DUBLIN, Nov. 19, 2021 /PRNewswire/ -- The "United States Maintenance, Repair, and Operations (MRO) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
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The United States Maintenance, Repair, and Operations (MRO) market is expected to register a CAGR of 2% during the forecast period (2021 - 2026). The United States is one of the severely affected countries in the world by the outbreak of COVID-19. This continues to negatively impact various industries, as demand sare shrinking and several disruptions to supply chain and operational challenges.
Due to the pandemic, different small and mid-scale manufacturers either shut down their facilities or reduced production. In terms of large enterprises, almost all facilities are running at reduced capacities due to lower demands.
A study by Arc Advisory Group where 56% of the respondents were from North America found that over 40% of the participants increased visibility and intelligence in their facilities and reduced production at some of their plants. Almost 30% were closing manufacturing plants that were located in high-risk areas.
Key Highlights
-- The growing concern for increasing internal efficiency, growing
digitization, and increasing investment in maintenance operations are
some of the major factors driving the maintenance, repair, and operation
(MRO) market.
-- As MRO helps in reducing operational expenditure substantially through
process efficiency and optimized supply chain management, an increasing
number of end-user companies are investing in the market studied.
Furthermore, the overall economic and manufacturing growth continues to
drive maintenance and repair demand in developed and developing
economies. The evolution of Industry 4.0 is also upgrading the MRO
sector.
-- Moreover, E-commerce has brought many advancements to the management of
the MRO supply chain. The ability to procure spare parts, maintenance
materials, and consumables from cost control and spend management to
aggregation strategic insights and workflow transparency. Online
platforms have streamlined and optimized many purchasing functions. This
is expected to be a key focus strategy adopted by various MRO vendors in
the country. For instance, Zoro is an online MRO distributor, primarily
serving US customers through Zoro.com.
-- Furthermore, the development of smart factories may bring advancement in
the MRO sector. For instance, the growth of predictive maintenance, such
as sensors and IoT, which allows manufacturing components to be replaced
before visible defects appear, is also expected to transform the global
MRO industry.
-- With the growing business propensity toward business analytics,
predictive maintenance and push to reduce overall cost and increase
profitability have positively influenced the studied market's growth. As
the market studied has been witnessing a significantly increasing
demand, many of the market players have been expanding their presence
and capacity to cater to a large customer base and encasing the
opportunity.
-- For instance, in January 2020, Emerson Bearing Boston, a bearing company
catering to the OEM and MRO markets globally, established a pump
industry division dedicated to a fast-growing customer base,
particularly in the oil and gas market.
Key Market Trends
Industrial MRO Accounts for the Largest Market Share
-- The adoption of industrial MRO equipment in the manufacturing industry
has been impacted due to various driving factors, including the
increasing demand to reduce cost, increasing market maturity, cyclical
fluctuations in new equipment sales, and the rising need to enhance
product quality. With enterprises in the manufacturing sector
continuously seeking to achieve large profit margins, they have been
looking to maximize return on net assets (RONA).
-- Further, manufacturing activities have witnessed exponential growth,
owing to the region's government initiatives to introduce various
programs, initiatives, and policies that encourage manufacturing
activity.
-- For instance, in March 2020, the National Institute of Standards and
Technology (NIST), a Department of Commerce in the United States, opened
a funding opportunity for high-impact projects that support the nation's
response to the COVID-19 pandemic. The funding is expected to be awarded
to eligible public-private partnerships with private and academic sector
manufacturing organizations on research, development, and manufacturing
processes.
-- As of June 2020, the Trump administration in the United States has been
documenting a proposal to invest nearly USD 1 trillion on infrastructure
to spur the country's economy back to life. A preliminary version of the
proposal prepared by the Department of Transportation has been planning
to reserve most of the investment for traditional infrastructure work,
like roads and bridges, and set the funds aside for 5G wireless
infrastructure and rural broadband.
-- Moreover, industrial players have also been deploying MRO equipment to
reduce supply chain costs, mainly driven by transportation and
production costs. Furthermore, collaborations in the space could provide
further impetus to the market's growth studied during the forecast
period.
-- For instance, in February 2020, Galco Industrial Electronics Inc., an
e-commerce driven MRO-focused distributor of electronic industrial
control and automation components, was acquired by Freeman Spogli & Co.
The company believes that the acquisition would pursue multiple
expansion opportunities and strategic initiatives in the United States.
Facility MRO is Expected to Witness Significant Growth
-- Facility MRO services are receiving considerable demand from the
building and construction industry. Due to the increasing construction
activities in the region, investments in infrastructure are also
expected to rise, which are further expected to increase the demand for
MRO services in the industry.
-- Several regional players are carving out a niche by specifically
catering to the construction end-user industry due to the surging
demand. For instance, US-based Service Logic LLC offers a full range of
HVAC services, like maintenance programs, that prolong the life of the
equipment to strategic capital planning initiatives that help
construction clients prepare for future investments.
-- Despite the decrease in sales and demand in the overall manufacturing
sector, the food manufacturing sector is witnessing an upsurge with the
ongoing COVID-19 pandemic. Evolving consumer demands have fuelled faster
production requirements in the region. As food manufacturers attempt to
meet that demand, standards, such as the FDA's Current Good
Manufacturing Practices (cGMP) regulations, have made food safety,
product quality, and food processing plant maintenance into relentless
efforts, further driving the studied market.
-- Furthermore, due to the global COVID-19 pandemic, an increasing number
of aerospace manufacturers and suppliers are shifting toward producing
medical products, such as ventilators and face shields. Hospitals need
to treat the growing numbers of seriously ill coronavirus patients.
-- Such initiatives are further expected to increase the demand for
facility MRO services in the industry due to the increasing need for
hygienic and efficient operations at the facility.
-- Further, All mining facilities must meet the security, safety,
communication, HVAC, energy, and automation criteria. For instance,
Sodexo USA offers mobile maintenance services, HVAC/R service, and
remote monitoring for mining facilities operating in the regional
marketplace.
Competitive Landscape
The United States Maintenance, Repair, and Operations (MRO) Market is highly competitive due to multiple vendors operating in the domestic and international markets. The market appears to be moderately concentrated. The significant players adopt strategies such as mergers, acquisitions, and expansions to expand their geographic reach and stay competitive. Some of the major players in the market are Ferguson PLC, W.W. Grainger Inc.?, WESCO International Inc. among others.
-- December 2020 - Graybar completed the acquisition of Shingle & Gibb
Automation. Headquartered in Moorestown, NJ, Shingle & Gibb Automation
provides advanced automation and control solutions to industrial users
and original equipment manufacturers (OEMs). Shingle & Gibb Automation
was founded in 1933 and had five locations in the eastern United States.
-- February 2020 - Ferguson PLC completed its purchase agreement to acquire
Columbia Pipe & Supply Co., an independent distributor headquartered in
Chicago. This acquisition not only increases its existing customer base
but also accelerates its Chicago market strategy to expand across the
Midwest of the United States rapidly.
Key Topics Covered:
1 INTRODUCTION
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Market Drivers
4.4.1 Growing Emphasis on Operational Efficiency and Aging of Manufacturing Equipment in the Country
4.4.2 Technological Advancements, such as the Emergence of Automated Solutions (Industrial Vending Machines)
4.5 Market Challenges
4.5.1 Commodification of MRO has led to Higher Competition, thereby, Affecting Industry Margins in Key Segments, such as Industrial
4.6 PESTEL Analysis - US MRO Industry
4.7 Major technological advancements - Convergence of IoT, 3D Printing, and Machine Vision systems
4.8 Assessment of COVID-19 Impact on the MRO Industry
5 US MRO MARKET SEGMENTATION
5.1 Industrial MRO
5.1.1 Current Market Scenario
5.1.2 By End-user Industry
5.1.2.1 Manufacturing (Process & Non-Process)
5.1.2.2 Construction
5.1.2.3 Chemicals & Petrochemicals
5.1.2.4 Food, Beverage & Paper Processing
5.1.2.5 Others (Metal Processing, Transportation, etc.)
5.1.3 Company Profiles
5.1.3.1 NOW Inc. (DistributionNOW)
5.1.3.2 Airgas Inc. (Air Liquide SA)
5.1.3.3 Ferguson PLC
5.1.3.4 Motion Industries Inc. (Genuine Parts Company)
5.1.3.5 HD Supply Holdings, Inc.
5.1.3.6 MRC Global Inc.
5.1.3.7 Fastenal Company
5.1.3.8 MSC Industrial Direct Co. Inc.
5.1.3.9 Applied Industrial Technologies
5.1.4 Market Outlook
5.2 Electrical MRO
5.2.1 Current Market Scenario
5.2.2 By End-user Industry
5.2.2.1 Manufacturing (Process & Non-Process)
5.2.2.2 Construction
5.2.2.3 Chemicals & Petrochemicals
5.2.2.4 Food, Beverage & Paper Processing
5.2.2.5 Others (Metal Processing, Transportation, etc.)
5.2.3 Company Profiles
5.2.3.1 WESCO International Inc.
5.2.3.2 Sonepar SA
5.2.3.3 Rexel Holdings USA (Rexel SA)
5.2.3.4 Eastern Power Technologies Inc.
5.2.3.5 Consolidated Electrical Distributors Inc.
5.2.3.6 Elliot Electric Supply
5.2.3.7 Border States Electric
5.2.4 Market Outlook
5.3 Facility MRO
5.3.1 Current Market Scenario
5.3.2 By End-user Industry
5.3.2.1 Healthcare and Social Assistance
5.3.2.2 Manufacturing (Process & Non-Process)
5.3.2.3 Construction
5.3.2.4 Other End-user Industries
5.3.3 Company Profiles
5.3.3.1 Ferguson PLC
5.3.3.2 W.W. Grainger Inc.
5.3.3.3 Fastenal Company
5.3.3.4 MSC Industrial Direct Co. Inc.
5.3.3.5 Lawson Products Inc.
5.3.3.6 The Home Depot, Inc. (Interline Brands Inc.)
5.3.3.7 Builders Firstsource
5.3.3.8 Bluelinx Holdings
5.3.4 Market Outlook
6 INVESTMENT ANALYSIS
Companies Mentioned
-- NOW Inc. (DistributionNOW)
-- Airgas Inc. (Air Liquide SA)
-- Ferguson PLC
-- Motion Industries Inc. (Genuine Parts Company)
-- HD Supply Holdings, Inc.
-- MRC Global Inc.
-- Fastenal Company
-- MSC Industrial Direct Co. Inc.
-- Applied Industrial Technologies
-- WESCO International Inc.
-- Sonepar SA
-- Rexel Holdings USA (Rexel SA)
-- Eastern Power Technologies Inc.
-- Consolidated Electrical Distributors Inc.
-- Elliot Electric Supply
-- Border States Electric
-- Ferguson PLC
-- W.W. Grainger Inc.
-- Fastenal Company
-- MSC Industrial Direct Co. Inc.
-- Lawson Products Inc.
-- The Home Depot, Inc. (Interline Brands Inc.)
-- Builders Firstsource
-- Bluelinx Holdings
For more information about this report visit https://www.researchandmarkets.com/r/w7h7r5
Media Contact:
Research and Markets
Laura Wood, Senior Manager
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