Industry Analysis & Industry Trends
As with numerous manufacturing industries in high labour cost countries such as Australia, the Natural Rubber Product Manufacturing industry is facing stiff competition from imports on the back of the strong Australian dollar. Local manufacturers are finding it increasingly difficult to compete on prices, much to the detriment of the industry. In addition, demand from major markets such as the Motor Vehicle Manufacturing industry is weakening and is therefore unable to offer much respite. However, industry revenue is estimated to increase by an annualised 3.3% over the five years through 2013-14. This growth is mainly due to a recovery from a large fall in 2008-09. Industry revenue is expected to grow by 5.4% to $904.7... purchase to read more
Industry Report - Starting a New Business Chapter
Most operators in the Natural Rubber Product Manufacturing industry are well established manufacturers, which makes it difficult for firms entering the industry to build a customer base that would enable them to operate at optimum capacity. There are also high capital costs to establish a business in the industry. Specialised machinery must be purchased to make rubber products. Most machinery used in this industry is specialised and is only able to cater to small segments of the market, where concentration and established brands may be present. The fragmentation of the products produced is a barrier to entry to the industry.
Not only do firms entering the industry face strong competition from within the industry, they will also face strong competition from imported products... purchase to read more