Industry Analysis & Industry Trends
The Sheet Metal Product Manufacturing industry will contract at an annualised rate of 2.2% over the five years through 2012-13 to reach $2.2 billion. The industry has weathered difficult conditions that were mainly triggered by the global financial crisis. The industry is forecast to decline by 1.4% in 2012-13, a bitter warning to what is to come in the next five years.
Over the past five years, industry operators have faced heightened levels of competition, both internally and externally. Operators across different product segments generally do not step on each other's toes as inter-segment products are highly differentiated. Within the same product segment, however, competition is intense as operators have to compete with products that are extremely similar... purchase to read more
Industry Report - Industry Investment Chapter
The Sheet Metal Product Manufacturing industry is classified as having a moderate level of capital investment. In 2012-13, this industry is forecast to have a capital-to-labour ratio of 1:5.63 - for every $1 spent on capital, $5.63 will be spent on labour, considered a medium level of capital intensity.
The level of capital intensity varies across product segments. Segments that profit from economies of scale tend to have a higher level of capital intensity throughout their operations. Products with minimum design requirements also tend to be highly capital intensive as production is usually highly automated with minimal labour requirements. One example of a product segment that falls perfectly in this category is the metal bottle closures segment... purchase to read more