Art and Office Supply Manufacturing
Business for Sale Industry Economics
$2,694,000,000
Revenue
-4.02%
Projected CAGR
2005 - 2020
Historical
2020 - 2026
Projection
-4.02%
CAGR
$2,694,000,000
Profit
Quick Scroll
Summary
The Art and Office Supply Manufacturing industry produces a variety of art and office materials, such as markers, pencils, staplers, and marking machines. Overall, the sector has faced difficulties in the five years leading up to 2020.
For example, the widespread usage of computers in schools and workplaces has resulted in the use of these machines rather than pens and pencils, stifling business development.
Furthermore, companies throughout the United States have shifted to performing activities remotely, necessitating fewer industry goods.
This is particularly true in 2020 when the COVID-19 (coronavirus) pandemic has resulted in work-from-home policies and immersive schooling for students, as well as impacts on the industry’s supply chain.
As a result, market income has dropped over time, falling at an annualized rate of 5.0 percent to $2.7 billion over the five years to 2020, including a 12.8 percent drop in 2020 alone.
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Performance
Plastics, paint, wood, and other products are purchased by the Art and Office Supply Manufacturing industry in order to produce a wide range of art and office supplies.
Art and office materials, such as pens and carbon paper, are available from industry operators. Over the five years leading up to 2020, the industry has seen a steady downturn as replacements for industry goods have grown in popularity, hampered its overall efficiency.
Furthermore, the COVID-19 (coronavirus) epidemic in late 2019 and early 2020 disrupted transport and heightened instability in the macroeconomic climate.
Since then, the virus has spread and the World Health Organization has called it a pandemic, prompting government officials to order people to stay at home.
The pandemic has caused considerable damage for business operators, as it has altered downstream spending habits and harmed producers in China and other impacted areas.
Many companies were forced to shutter or enforce work-from-home programs, and colleges were forced to complete their academic years remotely.
As a result, demand for office and art supplies has decreased, while online commerce has increased. During the time, the number of households who own at least one machine increased.
Outlook
Following the COVID-19 (coronavirus) pandemic, the art and office supply manufacturing market is expected to continue deteriorating.
The use of electronics in schools and universities, such as online lectures and electronic test-taking, as well as continued heavy use by companies, would most likely continue to pose a threat to domestic producers.
Similarly, rapid use of electronic technology such as offsite data collection, electronic invoices, billing, and online revenue databases is expected to continue over the next five years, stifling market demand even more.
Industry
Art and Office Supply Manufacturing businesses buy paint, wood, plastics, and other products to make a variety of art and office supplies.
Pens, pencils, painting supplies, staplers, labeling machines, and carbon paper are examples of industry items. Customers include companies, individuals, wholesalers, and office supplies stores.
Investment
Capital intensity is low to high in the Art and Office Supply Manufacturing industry. The research projects that in 2020, for every $1.00 spent on labor, $0.09 will be spent on capital, using wages as a proxy for labor and depreciation as a proxy for capital.
The majority of capital expenditures are made on products connected to information technology, such as software systems. Manufacturing equipment and manufacturing plants have been the subject of other capital expenditures.
However, in response to decreased demand, industry operators have reduced industry employment, lowering labor costs across the board. As a result, the capital intensity of the sector has grown in the five years leading up to 2020.
Technological advancements decreased manpower, and automated production systems will almost certainly continue to boost capital intensity in the future.
However, labor expenditures associated with highly qualified engineers and designers who earn a large yearly income are expected to somewhat counterbalance this growth.
Volatility
The revenue volatility in the Art and Office Supply Manufacturing business is modest. Following a brief uptick in sales following the recession’s lows, the sector’s revenue plummeted right before the five-year mark, as sluggish demand and fierce competition pinched industry operators.
However, revenue climbed in 2015 as the unemployment rate fell and disposable income rose. Furthermore, the sector is largely seasonal, with enterprises earning the majority of their income during the summer months before the start of the academic school year.
Newell Brands Inc., for example, generates an estimated 60.0 percent of its annual operating income in the second and third quarters of the year, while the company’s sales are the slowest in the first quarter.
As a result of the COVID-19 (coronavirus) pandemic, numerous institutions in the United States have stopped delivering in-person courses, causing downstream instability in these markets.
As a result of the pandemic, industry revenue is predicted to drop 12.8 percent in 2020 alone. The industry is likely to continue to see a fall in demand for its products, although this decline will be gradual.
As a result, revenue volatility is predicted to decline in the five years leading up to 2025.