Real Goods Solar Competition
Now Viewing Real Goods Solar's competition in: Manufacturing Sector
Recent Developments
Manufacturing Shipment Growth Mixed - US manufacturers reported a slight overall gain in durable and nondurable goods in 2007. The total value of US manufacturer shipments reached almost $5 trillion in 2007, up 1.1 percent from 2006. Double-digit losses were posted in wood products, construction machinery, and heavy-duty trucks; double-digit gains occurred in farm machinery, nondefense search and navigation equipment and aircraft parts, electrical equipment, pesticide and agricultural chemicals, and mining equipment.
Manufacturer Profits Highlighted - Overall, manufacturer profits fell 7 percent to $297 billion in third quarter 2007 compared to a year ago, due largely to a 45 percent drop in petroleum and coal products. Among the manufacturing industries posting the high profit gains were fabricated metals, up 37 percent; machinery, 22 percent; and computers and electronics, 20 percent. Motor vehicles, trailers, and parts manufacturer profits jumped to $12 billion after posting a loss of $1.4 billion the previous year; electrical equipment, appliance, and components manufacturers reported profits, which increased to $2.4 billion from a loss of $1.6 billion.
Food, Energy Buoy Producer Price Growth - The US manufacturing industry raised overall prices 6.3 percent in 2007, up significantly from the 1.1 percent gain in 2006. The growth was attributed to strong gains in food prices, which climbed 7.4 percent, and energy, which jumped 18.4. Without food and energy, overall prices of manufactured goods increased 2 percent, the same as the previous year's growth. Manufacturers typically raise product prices to compensate for higher raw material and energy costs and to expand profit margins.
Competitive Landscape
Most sales by manufacturing companies are to other manufacturing companies. Profitability depends on efficient and cost-effective manufacturing operations and distribution. Small companies can compete by producing specialized products or selling into specialized markets. Large companies have advantages of scale in procurement, production, distribution, and marketing. Average sales per employee vary greatly due to the large variety of products in this sector.
Manufacturing Sector Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of the US manufacturing sector is forecast to grow at an annual compounded rate of 4.5 percent between 2007 and 2012.
Manufacturing Production Growth Dips and Recovers
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.

First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.

- Demand: Boosted by weaker dollar
- Require efficient use of labor
- Risk: Slowing economy cuts domestic demand
Industries Where Real Goods Solar Competes
- Electronics
- Electrical Products
- Power Generation & Storage (primary)
- Electrical Products


