The Market for Portable Air Compressors
Portable air compressors represent a relatively stable technology compared to computers and other electronic gadgets. Businesses may purchase portable air compressors that won't need to be replaced for a decade or more. How has the relative longevity of portable air compressors affected the manufacturing and sales of these products, and what is the outlook for this market in the future?
First of all, the market for portable air compressors is surprisingly broad. Whether they are being used on the construction site, in the auto body shop, or for weekend home repairs, portable air compressors are more in demand than the fixed compressors owned by some large businesses. For example, cement and other hard surfaces are present in nearly every town and city in America, and these hard surfaces often need to be altered or removed for one reason or another. Air compressors are what contractors and construction workers have turned to for this heavy labor since the beginning of the twentieth century.
Portable air compressors are not only in demand but also have been made widely available to consumers through rental companies, such as Home Depot and Hertz. In the early 1990s, rental companies started investing in both portable compressors and their useful attachments, such as air hammers and air drills. Compressors are so often necessary for home improvements and last for so long that rental companies can make a profit on these products.
One side-effect of the durability and simplicity of compressors, however, is stiff competition for manufacturers. Compressors need to be sturdy and long-lasting, of course, but their purpose is rather simplistic. Besides becoming quieter and more environmentally friendly, they haven't changed much in the last decade. This lack of design innovation means that one manufacturer, Ingersoll-Rand, has held almost half of the market in portable air compressors for the past few decades. Only three other companies-Atlas Copco, Sullair, and Sullivan-have been able to compete with Ingersoll-Rand.
The portable air compressor business is not an easy one for manufacturers. Sales hit record highs in 1998, but the war in Iraq and a downturn in the economy have affected sales for the past few years. Sales hit a record low in 2003 causing companies like CompAir to stop producing portable air compressors. It is unlikely that portable air compressors will ever lose their popularity, however. As construction and development continues in American cities, the demand for air compressors will continue as well.