Industry Analysis & Industry Trends
The Aluminium Door and Window Manufacturing industry has faced a challenging trading environment over the past five years, characterised by aggressive price discounting as demand conditions have remained subdued. Industry revenue is projected to decline at an annualised 1.7% over the five years through 2014-15 to total $3.9 billion. Domestic demand is projected to fall by an annualised 1.0% to $4.1 billion.
The deterioration in the industry's performance since the late 2000s was sparked by the onset of the global financial crisis. It dampened consumer and business confidence and led to the slump of demand for architectural products in the key building markets. Aluminium prices declined dramatically as a result of weak demand and excess capacity, and industry revenue followed suit... purchase to read more
Industry Report - Starting a New Business Chapter
With the undifferentiated nature of industry products, the most significant barriers to entry relate to establishing a brand and a customer base. Builders often have preferred product suppliers, an arrangement that can make it more difficult for new or prospective entrants to secure market share. Aside from the need to build supplier relationships, traditional barriers to entry in the manufacturing sector are a low. For example, the industry has a low level of concentration overall. No player dominates any product segment in terms of economy of scale, meaning small-scale operations can be competitive. Capital requirements for entry to the industry are medium and depend on the scale of operations. This is especially the case for firms already engaged in some form of building activity... purchase to read more