Industry Analysis & Industry Trends
Despite its abundance of natural resources and large quantities of iron ore, Australia has a small steel sector compared with other developed nations. The Iron and Steel Forging industry is characterised by a number of small companies that produce highly customised, low-volume forged products. The industry also includes a few large companies that produce grinding media and wheels and axles for rolling stock.
Forging iron and steel is a method of shaping the metal. Unlike cast iron and steel products, where the metal is heated to its melting point and then poured into a mould, forging involves applying pressure to the metal and bending it into shape. Forging generally produces stronger steel components but is more difficult to perform on larger items... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the industry are high. A large investment in capital equipment is required to be successful in the industry. Most equipment is expensive is and used in large operations. Therefore, market entrants may find it difficult to reach their break-even points, especially if they start with a limited portfolio of clients.
Other barriers to entry include certification and licensing costs. Operators may find that they need different certifications to produce different products. Upon entering the industry, operators also need to employ highly skilled labour to operate machinery, meaning that labour costs are high during the initial stage of operations.
The industry is also characterised by economies of scope... purchase to read more