Inspection Industry Grows at 5.2% Reports IbisWorld

From manufacturing plants and construction sites to nuclear power plants, oil
refineries and shipyards, non-destructive testing (NDT) is used for numerous
applications across a wide range of industries. NDT services are used to detect
flaws, cracks, variations and minute changes in structures and surface finish
without damaging the products being tested. Rapidly changing technology and
the increasing complexity of products and processes that need testing have
boosted demand for the Non-Destructive Testing Services industry, says
IBISWorld industry analyst Andrea Alegria. "More so, strict government
regulation relating to health, safety and the protection of the environment
continues to drive industry revenue growth."

In the five years to 2012, despite the economic recession and its aftereffects on
the general economy, industry revenue grew an estimated 5.2% per year on
average to $727.5 million. "Although there was less new construction and many
projects were stalled during the five-year period, the need for compliance with
government safety regulations helped mitigate industry revenue declines
relating to construction site inspections," says Alegria. The Non-Destructive
Testing Services industry was not completely immune to the recession,
however, and revenue declined 4.3% in 2009. The recession caused some
industrial plants to close and forced others to postpone or reduce maintenance
expenditures. Nonetheless, industry revenue rebounded in 2010 and has
continued to grow since.

The industry's expansion will continue in the five years to 2017. Continuing
technological innovation will make NDT services more cost effective and
efficient for end users, which will boost demand for industry services. Greater
demand will, in turn, lure more entrants into the industry. Despite new entrants,
the industry will continue to consolidate as firms seek to expand their
geographic reach and enter niche markets. Larger players are expanding by
hiring more certified personnel or acquiring smaller firms, through which they
are able to expand their products and services to new markets and work with a
larger number of industries. These trends, combined with increasing demand
from downstream clients for one-stop shops, are pushing market share
concentration up. IBISWorld estimates that the industry’s concentration is
currently at a medium level. Major players include Rockwood Service
Corporation, Team Industrial Services and Applus. For more information, visit
IBISWorld’s Non-Destructive Testing Services in the US industry report page.

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IBISWorld industry Report Key Topics
This industry includes companies that primarily perform nondestructive tests
and inspections on industrial assets. It excludes medical tests, as well as
nondestructive testing equipment manufacturing.

About IBISWorld Inc.

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information, visit http://www.ibisworld.com or call 1-800-330-3772.