WWW.IBISWORLD.

COM Snowplow Manufacturing in the USOctober 2017   1

Melt away: Revenue will continue to climb as

operators replace worn snowplows
This report was provided to
Ducker Worldwide (2128230364)
by IBISWorld on 20 March 2018 in accordance with their license agreement with IBISWorld

IBISWorld Industry Report OD5432

Snowplow Manufacturing
in the US
October 2017 Iris Peters

2 About this Industry 15 International Trade 28 Industry Assistance

2 Industry Definition
2 Main Activities
2 Similar Industries
2 Additional Resources
3 Industry at a Glance
4 Industry Performance
4 Executive Summary
4 Key External Drivers
6 Current Performance
8 Industry Outlook
10 Industry Life Cycle
17 Business Locations
29 Key Statistics
19 Competitive Landscape 29 Industry Data
19 Market Share Concentration 29 Annual Change
19 Key Success Factors 29 Key Ratios
19 Cost Structure Benchmarks
20 Basis of Competition 30 Jargon & Glossary
21 Barriers to Entry
22 Industry Globalization
23 Major Companies
23 Douglas Dynamics Inc.
24 Meyer Products

12 Products & Markets 26 Operating Conditions

12 Supply Chain 26 Capital Intensity
12 Products & Services 27 Technology & Systems
13 Demand Determinants 27 Revenue Volatility
14 Major Markets 28 Regulation & Policy

www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com

WWW.IBISWORLD.COM Snowplow Manufacturing in the USOctober 2017   2

About this Industry

Industry Definition This industry manufactures snowplows
and spreaders, which are devices
mounted on vehicles to remove snow
and ice from outdoor surfaces. Products
vary based on intended purpose and
vehicle size. Most companies offer
light-duty, heavy-duty and utility
vehicle plows. The industry does not
include lawn- and garden-type snow-
moving equipment.

Main Activities The primary activities of this industry are

Manufacturing light-duty plows
Manufacturing heavy-duty plows
Manufacturing plow attachments
Manufacturing salt spreaders

The major products and services in this industry are

Heavy-duty plows
Light-duty plows
Replacement parts and accessories
Spreaders
Utility vehicle attachments

Similar Industries 33311 Tractors & Agricultural Machinery Manufacturing in the US

Tractors and agricultural machinery often have interchangeable blades and attachments that mount to
vehicles.

33312 Construction Machinery Manufacturing in the US

Snowplows are classified within the larger construction machinery manufacturing industry.

Additional Resources For additional information on this industry

www.douglasdynamics.com
Douglas Dynamics Inc.
www.snowplowtalk.com
Snow Plow Talk
www.census.gov
US Census Bureau

Provided to: Ducker Worldwide (2128230364) | 20 March 2018

WWW.IBISWORLD.COM Snowplow Manufacturing in the US October 2017   3

Industry at a Glance
Snowplow Manufacturing in 2017

Key Statistics Revenue Annual Growth 12-17 Annual Growth 17-22

Snapshot
$793.8m 4.8% 1.5%
Profit Exports Businesses

$56.4m $129.7m 35
Revenue vs. employment growth Average annual precipitation
Market Share
Douglas Dynamics 40 36
Inc. 
34
49.6% 20

32
% change

Meyer Products

Inches
0
7.6% 30

-20
28

-40 26
Year 09 11 13 15 17 19 21 23 Year 08 10 12 14 16 18 20 22
Revenue Employment
SOURCE: WWW.IBISWORLD.COM
p. 23
Products and services segmentation (2017)
4%
Key External Drivers 11% Spreaders
Replacement parts
Average annual and accessories
precipitation
Trade-weighted index
World price of steel
42%
Heavy-duty plows
Value of construction 15%
Utility vehicle
Prime rate attachments

p. 4 28%
Light-duty plows
SOURCE: WWW.IBISWORLD.COM

Industry Structure Life Cycle Stage Mature Regulation Level Light

Revenue Volatility High Technology Change Low
Capital Intensity Medium Barriers to Entry Medium
Industry Assistance None Industry Globalization High
Concentration Level High Competition Level High

FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 29

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WWW.IBISWORLD.COM
Industry Performance
Executive Summary   |   Key External Drivers   |   Current Performance
Industry Outlook   |   Life Cycle Stage
Executive Over the five years to 2017, the Snowplow
Summary Manufacturing industry’s revenue is
expected to grow at an annualized rate of
4.8% to $793.8 million including a 1.2%
increase in 2017 alone. Despite producing
equipment that is mainly seasonal, the
industry has been helped by steady weather
patterns in cold climate areas. High
precipitation levels led to high amounts of
snowfall throughout the Northeast, East,
Midwest and Western United States,
increasing the need for snowplows and
other snow control products. Weary
consumers and businesses held off on
replacing snowplows and other snow
Pent-up
demand and innovative plowing
systems will facilitate industry growth
control products during the recession, which
led to pent-up demand. As the economy
gradually improved over the period, that
pent-up demand was unleashed and
revenue grew 20.3%, 8.9% and 18.8% in
2012, 2013 and 2014, respectively. However,
weakening global demand for industry
products, due to a stronger US dollar and
lower average annual precipitation rates,
caused revenue to decline 5.4% in 2016.
During the previous period, many
operators cut costs by eliminating excess
labor and shutting down inefficient
Key External Drivers World price of steel
Steel is the most commonly used
commodity in the production of
snowplows and other industry goods.
When the price of steel decreases,
operators are better suited to manage
production costs. The world price of steel
is expected to rise in 2017.
Trade-weighted index
The trade-weighted index (TWI) measures
the strength of the US dollar relative to the
Provided to: Ducker Worldwide (2128230364) | 20 March 2018
Snowplow Manufacturing in the USOctober 2017   4
manufacturing plants. These cost-cutting
strategies aided in pushing profit margins
higher during the period as operators
increased efficiency. As a result, industry
employment has grown an annualized
1.8% over the past five years despite
production increases to meet additional
demand. Furthermore, industry operators
experienced steadily declining prices
associated with steel, the industry’s largest
input cost. The decline in steel prices
helped industry operators manage costs,
which also aided in profit margin growth.
Over the five years to 2022, the industry
will likely continue to grow, albeit at a
slower pace. Global growth concerns are
anticipated to linger in the short term
while the US dollar continues to rally
against other currencies, subduing further
export growth. Profit margins are
expected to increase as steel prices are
forecast to remain relatively unchanged
during the coming period. In regard to
product innovation, industry operators
have already introduced new technologies,
such as Meyer’s hands-free plowing
system and Toro’s three-step hitching
system. Over the next five years, operators
will look to improve durability and
reliability and make snowplows that more
easily attach to a wider variety of vehicles.
All of these trends will help spur projected
annualized growth of 1.5% to $855.7
million over the five years to 2022.
currencies of its major trading partners. A
strengthening US dollar discourages
foreign countries from purchasing US
goods, while also boosting demand for
foreign imports from domestic consumers.
Snowplow manufacturers generate the
majority of their revenue from exports.
Therefore, a change in the value of the US
dollar can have a major effect on industry
revenue. The trade-weighted index is
expected to fall in 2017, representing a
potential opportunity for the industry.
WWW.IBISWORLD.COM Snowplow Manufacturing in the USOctober 2017   5

Industry Performance

Key External Drivers Value of construction
continued The value of construction measures the
total dollar value of all public and private
construction done across the United
States. Higher construction rates in
developed areas in cold climate regions
increases the total area requiring snow
control and removal. The value of
construction is expected to grow in 2017.
Prime rate
The majority of snowplow end-users,
including professional snowblowers and
individual landscapers, depend on
financing and credit to invest in
snowplows or other industry products.
Rising interest rates discourage
consumer investment in assets.
Therefore, a change in interest rates can
alter end sales of snowplows, ultimately
affecting the pace of production at the
manufacturing level. The prime rate is
expected to increase in 2017.
Average annual precipitation
Average annual precipitation measures
total precipitation per year across the
United States. Precipitation levels have a
direct effect on snowfall patterns in cold
climate areas throughout the country.
Typically, higher expected snowfall leads
to greater sales of snowplows and other
snow control equipment. Average annual
precipitation is expected to decline in
2017, representing a potential threat to
the industry.

Average annual precipitation Trade-weighted index

36 105

34 100

32 95
Inches

Index

30 90

28 85

26 80
Year 08 10 12 14 16 18 20 22 Year 09 11 13 15 17 19 21 23

SOURCE: WWW.IBISWORLD.COM

Provided to: Ducker Worldwide (2128230364) | 20 March 2018

WWW.IBISWORLD.COM
Industry Performance
Current The Snowplow Manufacturing industry
has thrived over the five years to 2017,
Performance with expected annualized revenue growth
of 4.8% to $793.8 million, including an
increase 1.2% in 2017 alone. In general,
industry product sales are seasonal, with
demand for snowplows and other snow-
control products hinging on the level of
snowfall in a given year. This cyclical
effect can typically add to revenue
volatility, but snowplow manufacturers
have benefited greatly from increased
annual snowfall in recent years. For
example, annualized precipitation rose
12.8% in 2013 and 12.1% in 2015.
However, average annual precipitation in
2017 is expected to fall, which will subdue
industry revenue growth.
Demand for industry goods increased
dramatically over the period because
many consumers delayed replacement
during the prior period as a result of poor
economic conditions. Typically, higher
annual snowfall rates require greater use
of snowplows, increasing general wear
and tear and speeding up the
replacement cycle. In addition, snow
removal is not a discretionary service;
rather, it is necessary to secure public
safety and to ease transportation during
periods of heavy snowfall and continued
Input cost volatility Steel is the most commonly used
commodity in the manufacturing of
snowplows and other industry. Over the
past five years, the world price of steel has
declined at an annualized rate of 4.4%. As
the price of steel and other input materials
decline, so do variable costs associated with
the production of industry goods, giving way
to higher industry profitability. However,
commodity markets, in general, have been
extremely volatile over the period, which has
increased the level of uncertainty among
managers and decision makers in the
industry. However, despite volatile input
prices, demand has remained relatively
Provided to: Ducker Worldwide (2128230364) | 20 March 2018
Snowplow Manufacturing in the USOctober 2017   6
Industry revenue
40
20
% change
0
-20
-40
Year 09 11 13 15 17 19 21 23
SOURCE: WWW.IBISWORLD.COM
cold weather. Therefore, replacement is
required when plows become less
effective, usually after seven to eight
years of use. Therefore, as economic
conditions improved over the period,
consumers and businesses flocked back
to the market to make new purchases
that they deferred during the economic
downturn. This trend cleared the way for
growth, with revenue increases of 20.3%
in 2012, 8.9% in 2013 and 18.8% in 2014.
However, due to global growth concerns,
a stronger US dollar and lower average
annual precipitation, industry revenue
declined in 2016.
strong in the past five years, and as a result,
industry employment has grown in order to
keep up with production. The number of
industry employees is expected to increase
at an annualized rate of 3.6% to 1,915
workers in the five years to 2017. Similarly,
the number of industry operators has risen
in the past five years, as companies have
benefited from cost-cutting measures and
an overall decline in the price of steel.
Consequently, the number of industry
operators is expected to increase at an
annualized rate of 3.1% to 35 companies,
while profit margins are expected to rise
from 3.3% in 2012 to 7.1% in 2017.
WWW.IBISWORLD.COM
Industry Performance
Heavy trade activity The level of trade activity has fluctuated
heavily over the period and represents a
large market for industry products.
Most exports are destined for Canada
and other winter-heavy countries such
as Norway. However, similar to the
United States, demand for snowplows in
export markets depends on annual
snowfall in these countries.
Consequently, exports tend to swing
dramatically from year to year.
Furthermore, fluctuations in the US
dollar have a significant effect on export
growth because it is inherently more
expensive to manufacture in the United
States. Over the period, the trade-
weighted index (TWI), which measures
the strength of the US dollar compared
with currencies of its major trading
partners, is expected to increase an
Provided to: Ducker Worldwide (2128230364) | 20 March 2018
Snowplow Manufacturing in the USOctober 2017   7
The
level of trade activity
has been volatile over the
past five years
annualized 3.3%. As a result, foreign
demand for industry goods decreased as
such goods became more expensive for
foreign consumers, reducing exports at
an annualized rate of 9.3% to $129.7
million in the five years to 2017. The
market for imports also fluctuated
considerably over the period. When the
US dollar is stronger, imported products
can be relatively less expensive. As the
TWI increased over the past five years,
so did industry imports, at an expected
annualized rate of 12.5% to $183.8
million in the five years to 2017.
WWW.IBISWORLD.COM
Industry Performance
Industry Improving domestic economic conditions,
greater construction activity and continued
Outlook product innovation will help drive growth in
the Snowplow Manufacturing industry over
the five years to 2022. IBISWorld
anticipates industry revenue will grow at an
annualized rate of 1.5% to $855.7 million
over the next five years. Precipitation levels
are expected to remain largely unchanged
throughout the five-year period, with
average rainfall of about 30.0 inches per
year. If weather predictions hold true, cold
climate areas throughout the United States
will likely experience normal snowfall
patterns during the winter months,
increasing the need for snowplows and
creating greater need for consumers to
replace older equipment. Nevertheless,
weather patterns are nearly impossible to
accurately predict; therefore, any
discrepancy in the US climate in either
direction over the next five years will likely
cause revenue to fluctuate. For now,
long-term movements in weather
predictions are trending upward, presenting
a significant opportunity for snowplow
manufacturers during the five-year period.
Economic conditions in the United
States have gradually recovered since
2010 and continued improvement will
Construction Over the next five years, the improving
expansion helps economy will continue to spur construction
activity. IBISWorld expects the total value of
demand
construction, which measures the total
dollar value of all private and public
construction work in the United States, is
expected to grow in the five years to 2022.
According to Douglas Dynamics, continued
construction expansion of urban areas and
developed neighborhoods in cold-climate
regions increases the total area that
necessitates snow control or snow clearing.
This trend typically expands the market for
snowplows and other snow control
equipment that the industry produces,
Provided to: Ducker Worldwide (2128230364) | 20 March 2018
Snowplow Manufacturing in the USOctober 2017   8
aid industry performance in the next five
years. Many end users of snowplows and
other snow control equipment are
private snow-clearing companies and
individual landscapers. Both kinds of
customers are small scale in nature and
their demand for new equipment
depends on income levels and access to
financing. Higher construction activity
typically helps create more opportunities
for these service companies, creating a
greater need for snowplows. These
companies have benefited from low
interest rates, which are expected to
increase over the period but will remain
low relative to historical interest rates.
Depending on weather conditions in
export markets, export growth could
benefit revenue growth as well; however,
international trade levels typically swing
dramatically from year to year, showing
no steady pattern. The US dollar,
measured by the trade-weighted index
(TWI), is expected continue growing in
the five years to 2022, albeit very slowly.
Therefore, in the five years to 2022,
exports are forecast to increase an
annualized 0.4% to $132.5 million, while
imports are forecast to rise at an
annualized rate of 3.8% to $221.7 million.
Theexpansion of urban
areas in cold-climate
regions will benefit demand
for snowplows
helping revenue grow in the process. The
growth in activity will be backed largely by
nonresidential construction, though
multifamily infrastructure in urban areas
will aid residential construction growth,
which is a key market for snow clearing and
snow-control equipment.
WWW.IBISWORLD.COM
Industry Performance
Product innovation To avoid market saturation and to spur
continued growth, many of the industry’s
and lean
manufacturing largest operators are committed to new
product development. Snowplows, salt
spreaders and other snow control
equipment are simple mechanisms that
are used for a single purpose, so keeping
products fresh and innovative may
challenge some industry operators.
However, some of the larger companies
have recently introduced new
technologies, such as Meyer’s hands-free
plowing system or Toro’s three-step
hitching system. Over the next five years,
operators will continue to invest heavily
in research and development, with a
focus on product innovation. Many
companies will look to improve the
durability and reliability of their
products, while maintaining an efficient
production process.
Lean manufacturing of snowplows
grew drastically after the economic
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Snowplow Manufacturing in the USOctober 2017   9
Operators
will continue to
invest heavily in research
and development
downturn drove operators to close plants
or exit the industry altogether. Like the
commitment to new product
development, operators will also continue
their commitment to efficient
manufacturing to speed up the delivery
process and maintain profitability. As a
result, the number of industry
establishments and employees are both
expected grow largely in line with
revenue. As a result, IBISWorld estimates
the number of industry establishments
will increase modestly at an annualized
rate of 1.5% to 42 locations by 2022,
while the number of employees will rise a
forecast annualized 1.8% to 2,095
workers over the period.
WWW.IBISWORLD.COM Snowplow Manufacturing in the USOctober 2017   10

Industry Performance
Life Cycle Stage Lean manufacturing techniques are
keeping operations efficient
New products are gradually being
introduced to the market
Slight consolidation will increase
industry concentration

20 Maturity Quality Growth

% Growth in share of economy

Key Features of a Mature Industry

Company High growth in economic
consolidation; importance; weaker companies Revenue grows at same pace as economy
level of economic close down; developed Company numbers stabilize; M&A stage
importance stable technology and markets Established technology & processes
Total market acceptance of product & brand
15 Rationalization of low margin products & brands

10

Quantity Growth
Many new companies;
Snowplow Manufacturing minor growth in economic
importance; substantial
5 technology change

Lawn & Outdoor Equipment Stores

0
Construction & Mining Equipment Wholesaling

Construction Machinery Manufacturing

Iron & Steel Manufacturing
Tractors & Agricultural
-5 Machinery Manufacturing Decline
Shrinking economic
importance

-10
-10 -5 0 5 10 15 20
% Growth in number of establishments
SOURCE: WWW.IBISWORLD.COM

Provided to: Ducker Worldwide (2128230364) | 20 March 2018

WWW.IBISWORLD.COM
Industry Performance
Industry Life Cycle IBISWorld analysis reveals that the
Snowplow Manufacturing industry is in
the mature stage of its life cycle. Industry
Thisindustry value added, a measure of the industry’s
is M
 ature contribution to the overall economy, is
expected to grow at an annualized rate of
7.4% over the 10 years to 2022.
Comparatively, US GDP growth is
expected to rise an annualized 2.0%
during the same period. The industry’s
products have remained relatively
unchanged over the past five years, but
the largest companies are committed to
new product development to avoid
Provided to: Ducker Worldwide (2128230364) | 20 March 2018
Snowplow Manufacturing in the USOctober 2017   11
market saturation and to spur growth.
More importantly, the industry’s largest
operators implemented lean
manufacturing processes after the
financial turmoil brought on by the
recession. By cutting excess costs and
keeping operations efficient,
manufacturers have inherently increased
profit margins. At the expense of
sustained profit, many industry operators
have exhausted caution making
employment and establishment decisions
in light of prior economic conditions and
volatile commodity prices.
WWW.IBISWORLD.COM Snowplow Manufacturing in the USOctober 2017   12

Products & Markets

Supply Chain   |   Products & Services   |   Demand Determinants
Major Markets   |   International Trade   |   Business Locations

Supply Chain KEY BUYING INDUSTRIES

42381 Construction & Mining Equipment Wholesaling in the US
Wholesalers of construction equipment and machinery stock snowplows.
44421 Lawn & Outdoor Equipment Stores in the US
Lawn and outdoor equipment stores stock snowplows.
56173 Landscaping Services in the US
Landscaping companies use snowplows to remove snow from client properties.
56291 Remediation & Environmental Cleanup Services in the US
Remediation operators provide emergency relief during times of extreme weather.
99 Consumers in the US
Consumers form a primary market for light-duty snowplows and related attachments.

KEY SELLING INDUSTRIES

33111 Iron & Steel Manufacturing in the US
Snowplow manufacturers use steel and iron extensively.
33261 Wire & Spring Manufacturing in the US
Snowplows often use springs in their construction.
33291 Valve Manufacturing in the US
Snowplows often use fluid-power systems for articulation.
33351 Metalworking Machinery Manufacturing in the US
Snowplow manufacturers require metalworking machinery to form and fabricate plows and parts.

Products & Services Products and services segmentation (2017)

4%
11% Spreaders
Replacement parts and accessories

42%
Heavy-duty plows
15%
Utility vehicle attachments

28%
Light-duty plows
Total $793.8m SOURCE: WWW.IBISWORLD.COM

Snowplows feature a few key parts; one
example is a moldboard, which is the
prominent blade that pushes snow and
debris. They also include a mount, which
attaches the moldboard to a vehicle. Last,
snowplows require a drivetrain, which is
a system of hydraulic or otherwise
powered connections that enable the
plow to move up, down and articulate
from side to side.
Heavy-duty plows
Heavy-duty plows are expected to form
the majority of revenue for snowplow

Provided to: Ducker Worldwide (2128230364) | 20 March 2018

WWW.IBISWORLD.COM
Products & Markets
Products & Services manufacturers. Part of the reason stems
continued from the fact that heavy-duty plows are
suited for professional snow-removal
companies. Demand moves more
consistently with snow patterns because
these operators use snowplows as a vital
input to their businesses. On top of
steadier demand, these products are
generally more complex and carry higher
prices. This segment has increased over
the past five years on the back of rising
export volumes.
Light-duty plows
Light-duty plows serve the professional
and consumer markets. Professional
snow-removal companies often have
fleets of trucks at different weight ranges
that are suited to varying conditions of
snow removal. Meanwhile, consumers
typically have lighter vehicles that cannot
handle the added weight of a heavy-duty
plow. This segment has declined over the
past five years.
Utility vehicle attachments
Utility vehicle attachments include plows
for small construction machinery like
Demand Several factors contribute to demand for
Determinants snowplows. Overall, areas of high average
annual snowfall form the basis for the
snowplow market. Within these markets,
replacements of existing plows form the
primary source of demand, according to
industry leader, Douglas Dynamics. In
turn, the average life of a snowplow or
spreader as dictated by the owner’s use
and maintenance drives replacement
demand. According to Douglas, actively
used snowplows have a life span of about
seven or eight years.
In addition to replacement demand,
economic conditions in the United States’
snowy regions typically influence
demand, with strong economies
supporting sales and weak economies
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Snowplow Manufacturing in the USOctober 2017   13
Bobcats and other mini-dozers. These
applications suit construction sites that
already have utility vehicles on hand, so
they lack the need for a dedicated plow
truck. This segment has declined over the
past five years.
Replacement parts, accessories
and spreaders
Replacement parts and accessories
include springs, lights, cab controls,
ballast retainers and curb guards. This
segment forms a large volume of sales, yet
their prices and margins are much lower
than that of actual plows. Replacement
parts and accessories have increased as a
share of revenue over the past five years
due to adverse economic conditions that
reduced demand for new plows in key
downstream markets. Last, spreading
equipment is usually mounted on the back
of light-duty vehicles. A hopper containing
sand or salt feeds granules into a spinning
wheel that disperses the materials onto icy
surfaces, thereby lending traction to the
road. Spreaders are expected to make up a
relatively marginal share of revenue on a
consistent basis.
delaying plow replacements. In the latter
situation, sales of parts and accessories
generally increase as users seek to extend
the useful life of their snowplows. Still,
the industry’s equipment is considered
vital to public safety and mobility in
snowy metros, so delays on new plow
purchases can only last a short time,
regardless of economic conditions.
Industry demand also stems from
innovations that improve efficiency and
reliability, such as Meyer’s hands-free
positioning system that automatically
raises and lowers the plow blade
depending on which gear the vehicle is in.
Also, construction activity in snowy
regions increases the total area that
requires snow and ice removal, growing
WWW.IBISWORLD.COM
Products & Markets
Demand the snowplow market and potential for
Determinants demand. Last, macroeconomic factors
that influence demand include the
continued
Major Markets Major market segmentation (2017)
16.3%
Exports
28.5%
Consumers
Total $793.8m
Professionals
Professional users are estimated to
account for the highest share of revenue.
These clients demand snowplows and
related parts and accessories as inputs
into their landscaping and snow-removal
businesses. Also, municipalities demand
snowplows for their fleets to perform
related maintenance during snow seasons.
This market has declined as a share of
revenue over the past five years, as
recessionary conditions limited the ability
of operators to invest in new plows.
Instead, this market increased its demand
for replacement parts and accessories that
extend the life of existing equipment.
Consumers
Consumers are estimated to form the
second-largest share of revenue.
However, the consumer market is limited
to individuals in snowy climates who
have vehicles capable of carrying
Provided to: Ducker Worldwide (2128230364) | 20 March 2018
Snowplow Manufacturing in the USOctober 2017   14
trade-weighted index (with regard to
sales of exported and imported products)
and the availability of credit.
55.2%
Professionals
SOURCE: WWW.IBISWORLD.COM
snowplows. Moreover, much of this
particular market resides in cities that
are so used to snowy conditions that local
governments contract with professionals
to remove snow from roads and streets.
Lastly, snow plows are an expense, so
sales tend to drop during times of
economic uncertainty.
Exports
International trade forms the smallest
share of revenue in the Snowplow
Manufacturing industry. Sales to
customers in foreign countries, especially
Canada, consistently account for more
than half of overall revenue. Though
exports fell over the five years to 2017,
they are ultimately very volatile,
fluctuating based on the strength of the
US dollar as well as weather conditions in
major buying countries. For more
information, see the International Trade
section of this report.
WWW.IBISWORLD.COM Snowplow Manufacturing in the USOctober 2017   15

Products & Markets

International Trade The Snowplow Manufacturing industry

exhibits moderate levels of international Industry trade balance
trade. Exports have declined in the past
Level & Trend 400
five years as a result of growing strength
 xports in the
E in the US dollar while imports have risen.
200
industry are But during that time, both fluctuated
Mediumand wildly from year to year. For example.

$ million
Decreasing Exports dropped 36.1% in 2012 before 0
growing in each of the next two years
Imports in the before declining double-digit rates in -200
industry are 2015 and 2016. Meanwhile, imports grew
Mediumand 88.1% and 30.0% in 2014 and 2015 -400
respectively, before dropping at a double- Year 09 11 13 15 17 19 21 23
Increasing digit rate in 2016. Exports Imports Balance
Neither imports nor exports follow a SOURCE: WWW.IBISWORLD.COM

specific growth trend, but rather both tend

to fluctuate based on the specific demand
trends of countries that manufacture and
use snow plows. One or two years of mild
snow in the United States could lead to a
dramatic decrease in imports as domestic
manufacturing satisfies a larger share of
demand. Similar low snow levels in
northern Europe might lead to a dramatic
decrease in exports as well. Ultimately,
international trade of snow plows fluctuates
along with global weather conditions.
Unless one country or global region asserts
dominance as a major supplier of
snowplows, shifting trade from year to year
is expected to remain the status quo.
Overseas manufacturers, particularly
in China and Mexico, face fewer
regulations and lower wage costs, and

Exports To... Imports From...

5.6%
All other
11.0%
2.4%
Switzerland
31.4%Mexico
4.5% Belgium
3.4%
Norway
China
14.5%
Other

25.9%
China

75.2%
Canada

26.1%
Canada

Year: 2017 Total $129.7m Total $183.8m

SIZE OF CHARTS DOES NOT REPRESENT ACTUAL DATA SOURCE: USITC

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WWW.IBISWORLD.COM Snowplow Manufacturing in the USOctober 2017   16

Products & Markets

International Trade these factors help them lower their
continued operating costs. In turn, operational
savings are passed on to consumers in
the form of lower prices, undercutting
US-made goods and posing a serious
form of price-based competition. Top
import origins include Mexico, Canada,
China and Switzerland. For imports and
exports, trade with Mexico and Canada
benefits from shared borders with the
United States and from the North
American Free Trade Agreement.

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 WWW.IBISWORLD.COM Snowplow Manufacturing in the USOctober 2017   17

Products & Markets

Business Locations 2017

West
AK
0.0 New
England
ME
Great Mid- 0.4

Lakes Atlantic 1 2
NY 3
WA MT ND 2.9
5 4
2.8 1.8 MN
Rocky
13.1 4.4
WI
OR Mountains SD
2.0
Plains 7.3 MI
4.1
PA
3.0
6
7
2.5 ID IA OH 9 8
1.1 WY 5.5
0.1
NE
4.4
IL IN WV VA
7.4 3.0 1.2

West NV
1.2 0.5
KY
UT MO
1.3 NC
0.3
1.1 CO KS 0.0 1.0
1.1 2.6 TN
SC
Southeast
2.4
CA 1.3
6.6
OK AR GA
3.0 0.8 AL 2.2
AZ MS 0.0
0.0 NM
0.8 Southwest 0.8

TX LA
0.0 FL
1.0 2.2

West
HI
0.0 Additional States (as marked on map) Establishments (%)

1 VT 2 NH 3 MA 4 RI Less than 3%
0.1 0.3 0.7 0.1 3% to less than 10%
10% to less than 20%
5 CT 6 NJ 7 DE 8 MD 9 DC
0.3 0.9 0.0 0.4 0.0
20% or more

SOURCE: WWW.IBISWORLD.COM

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WWW.IBISWORLD.COM Snowplow Manufacturing in the USOctober 2017   18

Products & Markets

Business Locations IBISWorld estimates that the Snowplow

Distribution of establishments vs. population
Manufacturing industry is most
concentrated in the Great Lakes, Rocky
30
Mountains and Plains regions. All of
the industry’s top snowplow
manufacturers have headquarters in the 20
Great Lakes region, which is known as a
snow belt. Lake-effect snow, which

%
occurs when wind gathers moisture 10
from the surface of large bodies of
water and deposits it on land as
precipitation, is common in the region 0
and generates significant amounts of

West

Great Lakes

Mid-Atlantic

New England

Plains

Rocky Mountains

Southeast

Southwest
snow each year. Likewise, the Rocky
Mountains region, with its high average
altitudes and long, cold winters,
generates substantial amounts of Establishments
snowfall each year, requiring a suitable Population
manufacturing base for snowplows. SOURCE: WWW.IBISWORLD.COM

Last, the Great Lakes and West regions

facilitate trade with Canada thanks to giving incentive to manufacturers to
shared geographical borders, further locate in these regions.

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WWW.IBISWORLD.COM
Competitive Landscape
Market Share Concentration   |   Key Success Factors   |   Cost Structure Benchmarks
Basis of Competition   |   Barriers to Entry   |   Industry Globalization
Market Share IBISWorld analysis reveals the Snowplow
Concentration Manufacturing industry exhibits a high
level of market share concentration. In
2017, the largest industry operator,
Level
Douglas Dynamics, is expected to account
Concentration in for 49.6% of all industry revenue. Douglas
this industry is H
 igh Dynamics, achieves its dominance through
a vast network of distributors, acquisition
activity and broad product offerings. Given
the nature of snowplow demand being
Key Success Factors Targeting key geographies
By nature, snowplows require certain
climatic conditions. Operators that target
IBISWorld identifies regions with higher average snowfalls will
250 Key Success likely succeed.
Factors for a
business. The most Distribution arrangements
The largest snowplow makers depend on
important for this
nationwide networks of dealers and
industry are: vendors to sell their products.
Cost Structure The cost structure for the average
Benchmarks industry operator in the Snowplow
Manufacturing industry is centered on
purchase costs, with wages, profit
margins and depreciation consuming the
next largest shares of revenue,
respectively. Profitability in the industry
has soared as a result of cost-cutting
measures implemented in prior periods
and declining prices for key input goods,
such as steel. As a result, the average
industry profit margin is expected to
grow from 3.3% of revenue in 2012 to
7.1% in 2017.
Purchases
Like most manufacturing industries,
purchase costs in the Snowplow
Manufacturing industry make up the
largest share of industry revenue,
accounting for 54.5%. Purchase costs
fluctuate with rises or falls in commodity
prices of steel, aluminum, plastics and
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Snowplow Manufacturing in the US October 2017   19
limited to regions heavily affected by snow,
market share concentration is expected to
remain firmly in the hands of Douglas
Dynamics which has established a large
presence in these areas. Furthermore,
owner-operators in the remainder of
industry operators lack the economies of
scale, vertical integration and product
scope featured among dominant players
such as Douglas Dynamics.
Seasonal production
Snowplow demand usually increases
during winter months and falls during
summer months.
Brand loyalty
Industry leader Douglas Dynamics
cites brand loyalty as the most
important success factor, even
beyond price.
other materials used in the production
process. Since the world price of steel
has declined at an expected annualized
rate of 4.4% over the past five years,
purchase costs as a share of revenue
have also declined.
Wages
Industry wages as a portion of revenue
have increased over the five years to
2017. When demand increases,
industry operators typically hire more
employees to keep up with rising
production. As a result, wages as a
share of revenue have risen from 7.6%
of revenue in 2012 to 10.1% in 2017.
However, additionally, volatility in
commodity markets and prices for key
input materials such as steel have
raised the overall level of uncertainty
for industry decision makers. Higher
uncertainty has caused many industry
operators to delay hiring and
WWW.IBISWORLD.COM Snowplow Manufacturing in the US October 2017   20

Competitive Landscape

Cost Structure expansion decisions as costs can vary machines to produce their products. As
Benchmarks significantly from year to year. a result, depreciation costs have
remained relatively unchanged over the
continued
Depreciation and other costs past five years and are expected to
Compared with most other account for 1.7% of revenue in 2017.
manufacturing industries, depreciation Other costs include rent and utilities,
is low as snowplow manufacturers do marketing expenses and general
not use many highly specialized administrative expenses.

Sector vs. Industry Costs

Average Costs of
all Industries in Industry Costs
sector (2017) (2017)
100 n Profit
7.3 7.1 n Wages
11.8 10.1 n Purchases
80 n Depreciation
n Marketing
n Rent & Utilities
n Other
Percentage of revenue

60
55.5 54.5

40

1.7 0.9 0.1

2.2 2.5 0.5
20

19.8 25.6
0
SOURCE: WWW.IBISWORLD.COM

Basis of Competition Internal competition techniques, in which companies find

Primary bases of competition include the ways to do more with less (e.g. training
reach of distributor networks, employees on multiple jobs). Lastly,
Level & Trend manufacturing efficiencies and product product scope involves manufacturing a
 ompetition
C in scope. Larger distributor networks help range of snowplows, spreaders and
this industry is market a company’s snowplows to related parts and accessories, each suited
Highand the trend consumers in more places. For some, to a different vehicle or environment.
distributors can also provide insight into Secondary bases of competition include
is I ncreasing
user behavior and preferences and more customer loyalty and brand recognition
straightforward provision of inventory with regard to end-users and distributors.
and sales data. Manufacturing efficiencies To generate brand loyalty, operators need
hinge on the adoption of lean production superior innovation, productivity,

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WWW.IBISWORLD.COM
Competitive Landscape
Basis of Competition customer support and consistent quality.
continued According to industry leader Douglas
Dynamics, past brand experience, rather
than price, is the key factor influencing
snowplow purchases.
External competition
While there are no substitutes for
snowplows and related equipment,
imports form a significant portion of
external competition. In 2017, imports
are expected to account for about one-
Barriers to Entry Barriers to entry in this industry are
medium. The Snowplow Manufacturing
industry exhibits a high level of
Level & Trend concentration. This factor represents the
 arriers to Entry
B most significant barrier to entry, as new
in this industry industry participants must compete
are M ediumand against efficient, vertically integrated
players with large economies of scale.
Increasing
Furthermore, since the industry exhibits
a low level of technology change, there
will likely not be any opportunities for
new players to enter the market on the
back of a new technology. Since smaller
operators cannot compete on price with
the larger companies’ economies of scale,
they will likely leave the industry,
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Snowplow Manufacturing in the US October 2017   21
third of domestic demand. Import
penetration has increased, as the US
dollar has strengthened over the period,
which has made foreign goods cheaper
relative to domestically produced goods.
In doing so, consumers in downstream
markets have turned to cheaper imports.
Foreign producers can keep their
operating costs low and pass on savings
to the customer in the form of lower
prices. As a result, imports form the
primary basis of external competition.
Barriers to Entry checklist
Competition High
Concentration High
Life Cycle Stage Mature
Capital Intensity Medium
Technology Change Low
Regulation & Policy Light
Industry Assistance None
SOURCE: WWW.IBISWORLD.COM
increasing industry concentration.
Consequently, IBISWorld expects that
the barriers to entry in this industry will
rise over the next five years.
WWW.IBISWORLD.COM Snowplow Manufacturing in the US October 2017   22

Competitive Landscape

Industry The Snowplow Manufacturing industry exports account for 16.3% of all
Globalization exhibits a moderate level of revenue. Trade activity fluctuates
globalization. First, international trade greatly from year to year, driven by
activity is significant for both imports seasonal snowfall, increases in the
Level & Trend and exports. Imports account for about trade-weighted index and fluctuations
 lobalization
G in 21.7% of domestic demand, while in input costs, such as steel.
this industry is
Highand the trend
is I ncreasing

International trade is a Trade Globalization Going Global: Snowplow Manufacturing 2005-

major determinant of 2017
an industry’s level of
200 Export Global 200 Export Global
globalization.
Exports offer growth
opportunities for firms. 150 150

Exports/Revenue
Exports/Revenue

However there are legal,

economic and political risks 100 100
associated with dealing in
foreign countries.
50 50 2005
Import competition can Snowplow
bring a greater risk for Manufacturing 2017
companies as foreign 0 Local Import 0 Local Import
producers satisfy domestic 0 40 80 120 160 0 40 80 120 160
demand that local firms Imports/Domestic Demand Imports/Domestic Demand
would otherwise supply.
SOURCE: WWW.IBISWORLD.COM

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WWW.IBISWORLD.COM Snowplow Manufacturing in the USOctober 2017   23

Major Companies
Douglas Dynamics Inc. | Meyer Products | Other Companies

Major players
(Market share) Meyer Products 7.6%

42.8%
Other

Douglas Dynamics Inc. 49.6% SOURCE: WWW.IBISWORLD.COM

Player Performance The roots of Douglas Dynamics Inc. were
formed more than 50 years ago in
then-independent companies Fisher
Douglas Dynamics Engineering and Western Products. Since
Inc. then, ownership has changed hands
Market share: 49.6% several times; however, now the company
has a leading market position in the
Industry Brand Names
Snowplow Manufacturing industry.
Blizzard
Based out of Milwaukee, Douglas’ sole
Fisher
segment produces snowplows and ice
Western
control equipment for light trucks.
Manufacturing plants are located in
Milwaukee and Rockland, ME, and major
markets include Alaska, Canada and
parts of Europe and China. At the end of
2016, the company employed 1,104
full-time workers.
Douglas uses a lean production
strategy and variable cost structure to
manufacture snowplows, spreading
equipment and related parts and
equipment under the Fisher, Western
and Blizzard brands. The variability of
the cost structure stems from the
company’s vertical integration, which
allows it to more efficiently manage input
costs and logistics. Products are sold
through a distribution network of about
720 truck-equipment operators in the
Midwest, East, Northeast and Canada.
The company’s latest annual report
asserts that brand experience, not price,
is the most important purchasing factor
for consumers.
The company originally went public in
2010 and, in May 2013, made its first
acquisition as a public company. It
bought TrynEx International and its full
line of products including SnowEx,
TurfEx and SweepEx brands. Since, the
company has continued to push for
greater market power by acquiring
Henderson Enterprises Group Inc. in
2014. The acquisition provided Douglas
Dynamics with greater product
diversification as well as greater access to

Douglas Dynamics - financial performance

Revenue Operating Income
Year ($ million) (% change) ($ million) (% change)
2012 140.0 -33.0 18.9 N/C
2013 194.3 38.8 27.5 45.5
2014 303.5 56.2 72.2 162.5
2015 400.4 31.9 77.4 7.2
2016 380.2 -5.1 63.1 -18.5
2017* 393.9 3.6 46.7 -26.0

*Estimates
SOURCE: ANNUAL REPORT AND IBISWORLD

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WWW.IBISWORLD.COM Snowplow Manufacturing in the USOctober 2017   24

Major Companies

Player Performance Henderson’s network of dealers and
continued distribution centers. In 2016, Douglas
acquired Dejana Truck and Utility
Equipment, which allowed the company
to evolve from being a snow and ice
control company to a truck equipment
company. However, while this acquisition
has expanded the company’s offerings,
only an estimated 30.0% of Dejana’s
products are industry relevant.
Financial performance
Sales in recent years have exploded as a
result of strategic acquisitions that have
broadened Douglas Dynamic’s network of
distribution centers as well as their
product portfolio. For example, after the
acquisition of TrynEx, company revenue
increased 38.8% in 2013. Then, after the
purchase of Henderson, company revenue
again increased by 56.2% in 2014. Over
the five years to 2017, the company is
expected to grow an annualized 23.0% to
$393.9 million. The company continues to
be optimistic about its long-term future as
it has expanded internationally into
European and Asian markets. However,
recent growth concerns in Asian markets,
namely China, could curtail growth in the
years to come. In 2017, company revenue
is expected to increase 3.6% as a result of
the Dejana acquisition.

Player Performance Meyer Products LLC is a manufacturer of
high-performance snow and ice-
management equipment. The company
Meyer Products first began producing snowplows in 1926
Market share: 7.6% in upstate New York, but is now based in
Euclid, OH. Meyer offers a range of
products, including snowplow
attachments for personal home use on
light-duty vehicles; plow attachments for
tractors, ATVs or other utility vehicles;
and snowplows for professional use. The
company also produces salt spreaders and
other snow and ice control equipment.
Meyer Products is a subsidiary of the
private investment firm Louis Berkman
Company. In 2015, ASH Group, which is a
European-based manufacturer of snow
plows, spreaders and related products,
acquired Meyer and its sister company
Swenson Spreader.
Financial performance
Prior to the ASH acquisition, Meyer was a
private company, and therefore, financial
data was limited. However, in 2015 and
2016, Meyer’s financial data was recorded
in the ASH annual reports. In recent years,
the company has expanded its customer

Meyer Products LLC - financial performance*

Revenue Operating Income
Year ($ million) (% change) ($ million) (% change)
2012 14.5 N/C 0.5 N/C
2013 16.1 11.0 0.9 80.0
2014 19.4 20.5 1.1 22.2
2015 20.0 3.1 1.6 45.5
2016 58.7 193.5 4.3 168.7
2017 60.6 3.2 4.3 0.0

*Estimates
SOURCE: ANNUAL REPORT AND IBISWORLD

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WWW.IBISWORLD.COM
Major Companies
Player Performance base due to the recent ownership change
continued and is expected to expand facilities and
new job opportunities in the next five years.
Other Companies In addition to the major companies in
the Snowplow Manufacturing industry,
there are several dozen smaller US-
based operators. Furthermore, many
other companies operate on a local or
regional scale, so they fail to generate a
significant share of revenue. While the
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Snowplow Manufacturing in the USOctober 2017   25
IBISWorld expects Meyer’s industry-
relevant revenue to grow at an annualized
rate of 33.1% to $60.6 million.
number of companies remained
stagnant over 2011 and 2012,
recovering economic activity in
consumer and downstream industrial
markets raised the number of operators
near prerecession levels in the five
years to 2017.
WWW.IBISWORLD.COM
Operating Conditions
Capital Intensity   |   Technology & Systems   |   Revenue Volatility
Regulation & Policy   |   Industry Assistance
Capital Intensity
Level
The levelof capital
intensity is M
 edium
Tools of the Trade: Growth Strategies for Success
New Age Economy
Recreation, Personal Services,
Health and Education. Firms
benefit from personal wealth so
stable macroeconomic conditions
are imperative. Brand awareness
and niche labor skills are key to
product differentiation.
Labor Intensive
Traditional Service Economy
Wholesale and Retail. Reliant
on labor rather than capital to
sell goods. Functions cannot
be outsourced therefore firms
must use new technology
or improve staff training to
increase revenue growth.
Snowplow Manufacturing in the USOctober 2017   26
The Snowplow Manufacturing industry
typically exhausts a medium level of capital Capital intensity
Capital units per labor unit
intensity. Input costs such as the price of
steel requires a large amount of capital as 0.5
heavy machinery is used to create snow
plows and snow plow attachments. 0.4
IBISWorld estimates that for every dollar 0.3
spent on labor, $0.17 is spent on capital.
Capital expenditure includes the purchase 0.2
of machinery required for production, 0.1
facility upgrades and technology
investments. In the past five years, declines 0.0
Economy Manufacturing Snowplow
in the price of steel have made costs Manufacturing
associated with the production of goods Dotted line shows a high level of capital intensity
less expensive. As a result, capital intensity SOURCE: WWW.IBISWORLD.COM
has decreased over the five years to 2017.
Investment Economy
Information, Communications,
Mining, Finance and Real
Estate. To increase revenue
firms need superior debt
management, a stable
macroeconomic environment
and a sound investment plan.
Capital Intensive
Snowplow
Manufacturing
Lawn & Outdoor Equipment Stores
Old Economy
Construction & Mining
Equipment Wholesaling Agriculture and Manufacturing.
Construction Machinery Manufacturing Traded goods can be produced
Iron & Steel Manufacturing using cheap labor abroad.
Tractors & Agricultural To expand firms must merge
Machinery Manufacturing or acquire others to exploit
economies of scale, or specialize
in niche, high-value products.
Change in Share of the Economy SOURCE: WWW.IBISWORLD.COM
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WWW.IBISWORLD.COM Snowplow Manufacturing in the USOctober 2017   27

Operating Conditions

Technology & Systems Companies in the Snowplow Manufacturing research and development each year,
industry pursue technological developments owning 42 patents across North America
Level in two ways. The first pursuit involves the and China. The other area of technological
creation of innovative products that give innovation occurs at the manufacturing
The level
of customers added value in terms of level. In the wake of the recent economic
Technology performance and efficiency. For example, downturn, companies have increasingly
Change is L ow many of Northern Star’s Boss line of turned to lean production techniques to
snowplows feature three-step hitching salvage profit margins. Methods include
systems designed to allow one operator to hiring fewer employees but training them to
mount the plow onto a vehicle. Meanwhile, perform more functions, assembling
Meyer recently introduced its hands-free multiple models at one time and investing
plowing system, which automatically raises into automation, such as robotic welders.
and lowers the moldboard depending on the IBISWorld anticipates research and
vehicle’s gear position (i.e. drive, reverse or development activity to pick up in line with
park). Likewise, industry leader Douglas rising replacement demand from slowly
Dynamics invests a significant amount into recovering downstream markets.

Revenue Volatility The Snowplow Manufacturing industry Part of the volatility from the past five years
exhibits a high level of revenue volatility. is also due to the recovery from the
Volatility is a function of changes in recession and swings in commodity prices,
Level
downstream demand. In turn, downstream such as steel. Consumers and businesses
The level of demand hinges on weather conditions and held off on purchases in the previous
Volatility is H
 igh the ability of key markets to purchase period, and pent-up demand led the
snowplows and related equipment. industry to surge throughout the period.
Demand from overseas also contributes to Industry volatility is anticipated to continue
volatility, but export markets are largely in the short-term as changes in
affected by currency fluctuations as well as downstream demand fluctuate year to year
weather conditions in buying countries. and input price uncertainty persists.

A higher level of revenue Volatility vs Growth

volatility implies greater
industry risk. Volatility can 1000 Hazardous Rollercoaster
negatively affect long-term
Revenue volatility* (%)

strategic decisions, such as 100

the time frame for capital
investment. Snowplow
10
When a firm makes poor Manufacturing
investment decisions it
may face underutilized 1
capacity if demand
suddenly falls, or capacity 0.1 Stagnant Blue Chip
constraints if it rises –30 –10 10 30 50 70
quickly. Five-year annualized revenue growth (%)
* Axis is in logarithmic scale
SOURCE: WWW.IBISWORLD.COM

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WWW.IBISWORLD.COM Snowplow Manufacturing in the USOctober 2017   28

Operating Conditions

Regulation & Policy In general, the Snowplow Manufacturing vehicle accessories, operators are also
industry faces many of the same regulatory subject to safety standards established by
pressures as any other hard-goods the National Highway Traffic Safety
Level & Trend manufacturer. Applicable federal, state and Administration. Failure to comply with any
 he level of
T local laws and regulations largely relate to of these regulations usually increases
Regulation is waste disposal and employee health and operating costs through legal fees and
Lightand the safety. Since the industry makes motor remediation efforts.
trend is S
 teady

Industry Assistance The Snowplow Manufacturing industry industry. These mainly include the
receives no direct or indirect assistance National Truck Equipment Association
from the government, as imports of and the Snow and Ice Management
Level & Trend snowplows lack applicable tariffs. Some Association. Industry assistance is
 he level of
T informal assistance exists in the form of expected to remain minimal over the five
Industry Assistance trade associations related to the years to 2021.
is N
 oneand the
trend is S
 teady

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WWW.IBISWORLD.COM Snowplow Manufacturing in the US October 2017   29

Key Statistics
Industry Data Industry World price
Revenue Value Added Establish- Exports Imports Wages Domestic of steel
($m) ($m) ments Enterprises Employment ($m) ($m) ($m) Demand ($)
2008 426.9 77.9 37 32 1,459 244.1 57.8 41.1 240.6 308.7
2009 301.1 52.4 36 31 1,366 278.2 69.7 34.5 92.6 183.6
2010 398.2 47.6 34 30 1,233 234.0 85.6 37.9 249.8 231.3
2011 522.4 75.3 33 30 1,388 330.2 115.7 42.9 307.9 268.3
2012 628.7 81.1 34 30 1,603 211.0 102.1 47.7 519.8 230.7
2013 684.6 114.3 35 32 1,695 217.5 64.2 65.8 531.3 220.2
2014 813.2 139.2 38 34 1,918 226.3 120.8 77.3 707.7 217.3
2015 829.5 162.6 39 34 1,944 180.4 157.1 85.5 806.2 148.0
2016 784.7 149.9 39 34 1,891 105.5 137.4 79.2 816.6 173.0
2017 793.8 150.1 39 35 1,915 129.7 183.8 80.3 847.9 184.4
2018 799.9 151.5 40 35 1,946 129.3 176.2 81.6 846.8 172.4
2019 819.0 156.6 40 36 1,988 127.6 218.2 83.5 909.6 164.6
2020 834.0 160.4 41 36 2,029 129.9 215.7 85.4 919.8 166.4
2021 843.8 163.0 41 36 2,058 130.7 219.1 86.7 932.2 168.9
2022 855.7 166.3 42 37 2,095 132.5 221.7 88.3 944.9 171.4

Annual Change Industry Establish- Domestic World price

Revenue Value Added ments Enterprises Employment Exports Imports Wages Demand of steel
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
2009 -29.5 -32.7 -2.7 -3.1 -6.4 14.0 20.6 -16.1 -61.5 -40.5
2010 32.2 -9.2 -5.6 -3.2 -9.7 -15.9 22.8 9.9 169.8 26.0
2011 31.2 58.2 -2.9 0.0 12.6 41.1 35.2 13.2 23.3 16.0
2012 20.3 7.7 3.0 0.0 15.5 -36.1 -11.8 11.2 68.8 -14.0
2013 8.9 40.9 2.9 6.7 5.7 3.1 -37.1 37.9 2.2 -4.6
2014 18.8 21.8 8.6 6.3 13.2 4.0 88.2 17.5 33.2 -1.3
2015 2.0 16.8 2.6 0.0 1.4 -20.3 30.0 10.6 13.9 -31.9
2016 -5.4 -7.8 0.0 0.0 -2.7 -41.5 -12.5 -7.4 1.3 16.9
2017 1.2 0.1 0.0 2.9 1.3 22.9 33.8 1.4 3.8 6.6
2018 0.8 0.9 2.6 0.0 1.6 -0.3 -4.1 1.6 -0.1 -6.5
2019 2.4 3.4 0.0 2.9 2.2 -1.3 23.8 2.3 7.4 -4.5
2020 1.8 2.4 2.5 0.0 2.1 1.8 -1.1 2.3 1.1 1.1
2021 1.2 1.6 0.0 0.0 1.4 0.6 1.6 1.5 1.3 1.5
2022 1.4 2.0 2.4 2.8 1.8 1.4 1.2 1.8 1.4 1.5

Key Ratios Imports/ Exports/ Revenue per Share of the

IVA/Revenue Demand Revenue Employee Wages/Revenue Employees Average Wage Economy
(%) (%) (%) ($’000) (%) per Est. ($) (%)
2008 18.25 24.02 57.18 292.60 9.63 39.43 28,169.98 0.00
2009 17.40 75.27 92.39 220.42 11.46 37.94 25,256.22 0.00
2010 11.95 34.27 58.76 322.95 9.52 36.26 30,738.04 0.00
2011 14.41 37.58 63.21 376.37 8.21 42.06 30,907.78 0.00
2012 12.90 19.64 33.56 392.20 7.59 47.15 29,756.71 0.00
2013 16.70 12.08 31.77 403.89 9.61 48.43 38,820.06 0.00
2014 17.12 17.07 27.83 423.98 9.51 50.47 40,302.40 0.00
2015 19.60 19.49 21.75 426.70 10.31 49.85 43,981.48 0.00
2016 19.10 16.83 13.44 414.97 10.09 48.49 41,882.60 0.00
2017 18.91 21.68 16.34 414.52 10.12 49.10 41,932.11 0.00
2018 18.94 20.81 16.16 411.05 10.20 48.65 41,932.17 0.00
2019 19.12 23.99 15.58 411.97 10.20 49.70 42,002.01 0.00
2020 19.23 23.45 15.58 411.04 10.24 49.49 42,089.70 0.00
2021 19.32 23.50 15.49 410.01 10.27 50.20 42,128.28 0.00
2022 19.43 23.46 15.48 408.45 10.32 49.88 42,147.97 0.00

Figures are in inflation-adjusted 2017 dollars. SOURCE: WWW.IBISWORLD.COM

Provided to: Ducker Worldwide (2128230364) | 20 March 2018

WWW.IBISWORLD.COM
Jargon & Glossary
Industry Jargon LAKE-EFFECT SNOWA common weather pattern in
which wind gathers moisture from the surface of large
bodies of water and deposits the accumulation on land
as snow.
LEAN PRODUCTIONA manufacturing philosophy that
pursues increased efficiencies at every facet of
production.
IBISWorld Glossary BARRIERS TO ENTRYHigh barriers to entry mean that
new companies struggle to enter an industry, while low
barriers mean it is easy for new companies to enter an
industry.
CAPITAL INTENSITYCompares the amount of money
spent on capital (plant, machinery and equipment) with
that spent on labor. IBISWorld uses the ratio of
depreciation to wages as a proxy for capital intensity.
High capital intensity is more than $0.333 of capital to
$1 of labor; medium is $0.125 to $0.333 of capital to $1
of labor; low is less than $0.125 of capital for every $1 of
labor.
CONSTANT PRICESThe dollar figures in the Key
Statistics table, including forecasts, are adjusted for
inflation using the current year (i.e. year published) as
the base year. This removes the impact of changes in
the purchasing power of the dollar, leaving only the
“real” growth or decline in industry metrics. The inflation
adjustments in IBISWorld’s reports are made using the
US Bureau of Economic Analysis’ implicit GDP price
deflator.
DOMESTIC DEMANDSpending on industry goods and
services within the United States, regardless of their
country of origin. It is derived by adding imports to
industry revenue, and then subtracting exports.
EMPLOYMENTThe number of permanent, part-time,
temporary and seasonal employees, working proprietors,
partners, managers and executives within the industry.
ENTERPRISEA division that is separately managed and
keeps management accounts. Each enterprise consists
of one or more establishments that are under common
ownership or control.
ESTABLISHMENTThe smallest type of accounting unit
within an enterprise, an establishment is a single
physical location where business is conducted or where
services or industrial operations are performed. Multiple
establishments under common control make up an
enterprise.
EXPORTSTotal value of industry goods and services sold
by US companies to customers abroad.
IMPORTSTotal value of industry goods and services
brought in from foreign countries to be sold in the
United States.
Provided to: Ducker Worldwide (2128230364) | 20 March 2018
Snowplow Manufacturing in the USOctober 2017   30
MOLDBOARDThe large flat metal surface of a plow
that makes contact with the road and pushes snow and
other debris aside.
INDUSTRY CONCENTRATIONAn indicator of the
dominance of the top four players in an industry.
Concentration is considered high if the top players
account for more than 70% of industry revenue.
Medium is 40% to 70% of industry revenue. Low is less
than 40%.
INDUSTRY REVENUEThe total sales of industry goods
and services (exclusive of excise and sales tax); subsidies
on production; all other operating income from outside
the firm (such as commission income, repair and service
income, and rent, leasing and hiring income); and
capital work done by rental or lease. Receipts from
interest royalties, dividends and the sale of fixed
tangible assets are excluded.
INDUSTRY VALUE ADDED (IVA)The market value of
goods and services produced by the industry minus the
cost of goods and services used in production. IVA is
also described as the industry’s contribution to GDP, or
profit plus wages and depreciation.
INTERNATIONAL TRADEThe level of international
trade is determined by ratios of exports to revenue and
imports to domestic demand. For exports/revenue: low is
less than 5%, medium is 5% to 20%, and high is more
than 20%. Imports/domestic demand: low is less than
5%, medium is 5% to 35%, and high is more than
35%.
LIFE CYCLEAll industries go through periods of growth,
maturity and decline. IBISWorld determines an
industry’s life cycle by considering its growth rate
(measured by IVA) compared with GDP; the growth rate
of the number of establishments; the amount of change
the industry’s products are undergoing; the rate of
technological change; and the level of customer
acceptance of industry products and services.
NONEMPLOYING ESTABLISHMENTBusinesses with
no paid employment or payroll, also known as
nonemployers. These are mostly set up by self-employed
individuals.
PROFITIBISWorld uses earnings before interest and tax
(EBIT) as an indicator of a company’s profitability. It is
calculated as revenue minus expenses, excluding
interest and tax.
WWW.IBISWORLD.COM Snowplow Manufacturing in the USOctober 2017   31

Jargon & Glossary

IBISWorld Glossary VOLATILITYThe level of volatility is determined by WAGESThe gross total wages and salaries of all
averaging the absolute change in revenue in each of the employees in the industry. The cost of benefits is also
continued past five years. Volatility levels: very high is more than included in this figure.
±20%; high volatility is ±10% to ±20%; moderate
volatility is ±3% to ±10%; and low volatility is less than
±3%.

Provided to: Ducker Worldwide (2128230364) | 20 March 2018

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