Battery Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 194 battery manufacturers in the US produce power sources for household, commercial, and industrial use. Major types of products include storage batteries, primary batteries, and parts for storage batteries. Firms may sell related products, such as battery chargers, power equipment, lights, and battery accessories.

Keeping Up with Advances in Technology

Battery technology moves forward, even as manufacturers expand existing capacity to keep up with growing demand for lithium-ion products for electric vehicles (EV).

Variable Raw Material Cost and Supply

The cost and supply of raw materials can vary and affect profitability for battery manufacturers.

Industry size & Structure

The average primary battery manufacturer employs fewer than 100 workers and generates $32 million annually, while the average storage battery manufacturer employs fewer than 50 workers and generates $60 million annually.

    • The battery manufacturing industry consists of about 194 firms that employ about 28,700 workers and generate $10 billion annually.
    • The industry is highly concentrated; the top 50 companies account for about 96% of industry revenue.
    • Large firms with primary battery manufacturing capacity include Energizer, Enersys, and Duracell (Berkshire Hathaway). Large global firms with storage battery manufacturing capabilities include LG Chem, CATL, BYD, Panasonic, and TESLA. Domestic firms, which include EastPenn Manufacturing, Clarios (Brookfield Business Partners), and Exide Technologies, typically have international operations.
    • Many lithium-ion battery manufacturers are subsidiaries of larger companies, including auto and consumer electronics manufacturers.
                                    Industry Forecast
                                    Battery Manufacturers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Jan 4, 2024 - Higher Minimum Wages Ahead in 2024
                                    • Battery manufacturers will have to monitor minimum wage changes, as 22 states increased their minimum wages in January 2024, according to USA Today. About half of the increases are automatic adjustments linked to inflation. States that raised their minimum wages in January 2024 include Hawaii ($14), Maryland ($15), Nebraska ($12), and Washington ($16.28). Several states are set to boost their minimum wage levels later this year, including Florida (up to $13 in September) and Nevada (up to $12 in July). According to the Economic Policy Institute, nearly 40 US cities and counties will increase their minimum wage rates above state levels at the start of the new year. The federal minimum wage is $7.25 an hour, and more than 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
                                    • Consumer confidence levels rose in December 2023 for the second month in a row, following three consecutive months of declines, according to data from The Conference Board. The Conference Board’s consumer confidence index increased to 110.7 in December 2023 from 101 in November 2023. According to Dana Peterson, Chief Economist at The Conference Board, “December’s write-in responses revealed the top issue affecting consumers remains rising prices in general, while politics, interest rates, and global conflicts all saw downticks as top concerns.” Peterson added that the gains in consumer confidence were largest in householders aged 35-54 and households with income levels of $125,000 and above. Plans to purchase homes, autos, and large appliances rose on a month-to-month basis as interest rates moderated.
                                    • Lingering supply chain problems, competitive pressures, and inflation are expected to limit growth in the US battery manufacturing industry, which is projected to grow at about 1% CAGR from 2022 to 2027, according to a recent Inforum forecast. This rate is slower than the projected growth of the overall economy. Employment levels in the industry have been stable in recent months, and employment costs have been consistent as wages have stayed steady.
                                    • US manufacturing activity contracted in December 2023, falling below the baseline for growth for the fourteenth consecutive month, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 47.4% in December, up from the 46.7% recorded in November. A reading above 50% indicates manufacturing expansion. December’s New Orders Index remained in the contraction zone at 47.1%. The December Production Index was 50.3%, up from November’s 48.5%. Only one manufacturing industry tracked by the ISM reported growth in December: Primary Metals. The industries reporting contraction in December were Printing & Related Support Activities; Apparel, Leather & Allied Products; Plastics & Rubber Products; Machinery; Nonmetallic Mineral Products; Textile Mills; Petroleum & Coal Products; Paper Products; Wood Products; Fabricated Metal Products; Computer & Electronic Products; Miscellaneous Manufacturing; Furniture & Related Products; Electrical Equipment, Appliances & Components; Transportation Equipment; and Chemical Products.
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