Industry Analysis Findings Introduction Kay Park Recreation has been a manufacturer of commercial outdoor furniture and a part Outdoor Furniture Manufacturing Industry in the US since 1954. The NAICS code for the Outdoor Furniture Manufacturing Industry in US is OD4821. This industry manufactures outdoor furniture such as lawn and patio chairs, picnic tables and patio umbrellas (McGinley, 2016). The key suppliers for the Industry are Cement Manufacturing, Metal Wholesaling, Plastic & Resin Manufacturing and Sawmills & Wood Production. Some related Industries to the Outdoor Furniture Manufacturing Industries in the US are Household Furniture Manufacturing (NACIS 33712), Office Furniture Manufacturing (NACIS 33721), Home Furnishing Wholesaling …show more content…
The top player in the industry is Heritage Home group which holds about 10.2% of market share. No other player in the industry holds more than 5% of market share and the majority of the industry participants are smaller manufacturers (like Kay Park) looking to serve specific regions, leading to geographic fragmentation and a low level of market share concentration. Competition in this industry is high and the trend is increasing. The industry is highly competitive as there are a large number of manufacturers in the industry all offering a similar product. Competition in the industry is based upon price, quality, product design and distribution networks, price being the major component. The industry also faces external competition from foreign manufacturers. Barriers to entry in this industry are medium and are steady. The main barriers are high start-up costs and some regulation regarding pollutant emissions, wastewater disposal and worker health and safety at the state and federal levels. Globalization in this industry is high and the trend is increasing. Imports represent over 50.0% of domestic demand, as foreign producers with cost advantages pass on savings to customers via lower prices. (McGinley,