Regulation Enforcement Helps Fall Protection Equipment Market Outpace Economy
The low to moderate levels of compliance with health and safety regulations have hindered the growth of the fall protection market in North America. However, with regulatory bodies cracking down on non-compliant companies, the market for fall protection gear is set to accelerate. More stringent enforcement of safety regulations by the government, oil and gas commissions, the Occupational Safety and Health Act (OSHA), American National Standards Institute (ANSI), and Canadian Standards Association (CSA), is expected to continue during the next five to seven years.
Analysis from Frost & Sullivan North American Fall Protection Equipment Market, finds that the market earned revenues of $453.7 million in 2010 and estimates this to reach $670.5 million in 2017 at a compound annual growth rate of 5.7%.
“Government regulators form industry standards across the North American fall protection equipment market by emphasizing the need for personnel working in an unprotected area to wear fall arrest equipment,” said a Frost & Sullivan Research Analyst. “As the legislation becomes more rigorous, the number of workers affected by the requirements will increase, giving a boost to equipment sales.”
Further, the inadequate awareness among workers about different fall protection products and their application has also considerably restrained the market. To increase product acceptance, equipment companies should conduct marketing campaigns and strategies related to fall protection awareness.
Greater knowledge of safety regulations will prompt end user companies to invest in additional fall protection products for the employees at risk of fall injuries. There is an increasing preference among end users for first-hand expertise and single-source supply, along with greater demands for managed supply contracts or leasing arrangements.
“Innovation, proximity to end users, investment in brand awareness, rational resources allocation, as well as new market and sector development are vital to succeed in the fall protection equipment market,” notes the analyst. “Novel technologies and improvements in ergonomics, comfort, and convenience are expected to increase equipment reliability and use.”
An aging labor force and obsolete infrastructure has not only intensified the requirement for fall protection but also heightened the competition. Participants range from small companies focusing on a single type of equipment to large multinational corporations that manufacture and supply many types of sophisticated safety products.
Competition is at its most intense among independent domestic manufacturers that specialize in select segments. Safety products’ industry business cycles reflect a need to replace products regularly due to normal wear and tear or due to their one time use design. Overall, tighter governmental control, higher penalties for noncompliance and fear of liability will continue to drive the market.