Musical Instrument Manufacturing
Competitive Landscape
Demand is largely driven by consumer income and education demographics. The profitability of individual companies depends on cost efficiencies. Many large companies benefit by offering a wide range of products. Small companies can compete effectively by specializing in high-end or niche instruments. The industry is labor-intensive: average annual revenue per employee is about $130,000.
Opportunities
Expanded Sales Efforts in Foreign Markets - US producers see opportunities to sell high-quality instruments in Asia, Russia, and Eastern Europe. Interest in music is strong in many of these markets, but...
Business Challenges
Competition from Imports - Imports account for about 50 percent of the US market for musical instruments, partly because of lower foreign manufacturing costs. China is the largest source...