Industry Analysis & Industry Trends
The Aluminium Door and Window Manufacturing industry has faced a challenging trading environment since the late 2000s, characterised by aggressive price discounting and subdued demand conditions. Industry revenue is projected to decline at an annualised 1.4% over the five years through 2014-15, to total $4.0 billion. Domestic demand is projected to fall by an annualised 0.8% to $4.2 billion.
The deterioration in the industry's performance over the past five years was sparked by the onset of the global financial crisis. This dampened consumer and business confidence and led to a slump in demand for architectural products in the key building markets. Aluminium prices have declined since 2011-12 as a result of weak demand and excess capacity... purchase to read more
Industry Report - Industry Investment Chapter
The Aluminium Door and Window Manufacturing industry has a low level of capital intensity. The industry allocates an estimated $10.78 in labour payments for every dollar spent on capital equipment inputs into production. The industry's labour costs represent an estimated 24.4% of industry revenue. This is relatively high for a metals manufacturing industry and reflects the labour-intensive nature of the industry's many small-scale fabricating businesses.
For the larger manufacturers, the nature of production requires investment in expensive manufacturing plants and equipment. This is to maximise efficiency, since such manufacturing infrastructure tends to have long life and depreciates slowly... purchase to read more