Industry Analysis & Industry Trends
The forging of iron and steel is a method used for processing metal by the application of thermal and mechanical pressure, to reach the desired shape. Forging generally produces stronger steel components than metal casting, and the finished product is suitable for high-stress applications. Traditionally, forged products have been important inputs into motor vehicle manufacturing and the production of other machinery, but these markets are steadily drying up as local manufacturers lose their competitive edge against imports.
Demand for forged products from the mining, construction and transport sectors has been insufficient to offset the loss of sales to the Manufacturing division as these customers import finished manufactured products... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry has a relatively medium concentration of ownership. The top four players are estimated to account two-thirds of industry’s revenue in 2015-16. However, this principally reflects the contribution of the two largest players, Arrium Mining Consumables and Donhad, which together account for an estimated 58.0%, of revenue.
The industry has a highly fragmented structure and comprises many small scale firms that compete in narrow geographic or product markets. According to the ABS, the majority of enterprises employ fewer than 20 people (91.0%), including almost 40% of businesses having no paid employees (typically sole proprietors and partners). The vast majority of enterprises generate annual revenue of less than $2.0 million (83.3%)... purchase to read more