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 - Industry Investment Chapter
Capital intensity is at a medium level within the Aluminium Door and Window Manufacturing industry. The nature of production requires investment in expensive manufacturing plants and equipment to maximise efficiency. Such manufacturing infrastructure tends to have long life and depreciates slowly. As a result, depreciation costs in any one year represent about 3.5% share of revenue.
The industry's capital depreciation to labour costs ratio is currently 1:6.1 which indicates that for every $1.00 the industry spends on capital equipment, it allocates $6.14 on labour inputs into production.
The key machinery assets used by the industry include extrusion presses, powder coating and anodising facilities... purchase to read more