Industry Analysis & Industry Trends
Slowing growth in the Mining division has adversely affected demand for industry products, and has prompted local players to decrease operating costs in light of shrinking sales. The Mining and Construction Machinery Manufacturing industry's revenue is forecast to decrease by 5.3% in 2014-15 to reach $5.1 billion, in contrast to the preceding period. Revenue is estimated to have grown at an annualised 2.6% over the five years through 2014-15, having been driven by the mining boom earlier in the period. The industry's performance reflects developments in downstream industries, including the mining, construction, and oil and gas sectors. Weak construction activity and volatile consumer sentiment have reduced demand for machinery... purchase to read more
Industry Report - Starting a New Business Chapter
The industry exhibits moderate levels of barriers to entry. Production is highly capital intensive, requiring large amounts of expensive, technically advanced machinery and equipment. Research and development costs are high. While opportunities exist in niche markets, having access to the latest technology, either in-house or through links with global suppliers, is essential.
Industry operators, particularly in the construction machinery segment, manufacture a diverse range of products and take advantage of large economies of scale to minimise costs. Competition is high, with highly regarded, multinational and diversified companies such as Caterpillar and Joy Global dominating sales. Longstanding distribution networks between operators and customers are another barrier to entry... purchase to read more