Industry Analysis & Industry Trends
The Explosive Manufacturing industry has been an indirect beneficiary of Australia's resource commodity boom. Robust demand from the thermal coal market, capacity expansions in the mining industries and strong ammonium nitrate prices have all been key growth drivers over the past five years. These factors are expected to result in annualised industry revenue growth of 7.6% over the five years through 2012-13. In 2012-13, industry revenue is forecast to post growth of 3.3%, supported by growth in Australia's mining economy as additional capacity comes on-stream. The weakening of some commodity prices will dampen demand, however, the strong growth overall will bring industry revenue up to an estimated $2.57 billion in 2012-13... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry to this industry are high. Of particular importance is the existence of already well-established players. The commercial market is dominated by two major world-class manufacturers with substantial market strengths (including their integration of explosives manufacturing with ammonium nitrate manufacturing, a key raw material input), while the military market is dominated by ADI.
Other significant barriers include highly specialised technical requirements, considerable capital resources and the need for a competitively priced supply of raw materials like ammonium nitrate. The high degree of regulatory controls, which characterise the operating environment of this industry, can also impose a substantial barrier... purchase to read more