Industry Analysis & Industry Trends
The Aluminium Door and Window Manufacturing industry has faced a challenging operating environment over the past five years. Industry revenue is expected to decline at an annualised 1.9% over the five years through 2013-14 to reach $3.9 billion. Aggressive price discounting and muted demand conditions weakened industry revenue performance.
The onset of the global financial crisis in the late 2000s resulted in a slump of demand for architectural products in the housing and commercial building markets, the primary sources of industry revenue. Consumer and business confidence plummeted, and access to credit was extremely difficult to secure. Falling demand and excess capacity led aluminium prices to decline dramatically, resulting in drops in revenue... 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