Industry Analysis & Industry Trends
The Machine Tool and Part Manufacturing industry has struggled in the wake of the financial crisis. Prior to the global downturn, industry players enjoyed solid yet average revenue growth as capital expenditure and household spending surged in line with trends in the overall economy. Since then, a collapse in global industrial production and trade has devastated the manufacturing division. Demand for automobiles, other consumer goods and capital goods fell dramatically, and this dampened the need for machine tools economy-wide. Revenue fell at an annualised 4.1% in the five years through 2012-13. Further, albeit restrained, decline is expected to take the industry down 0.7% to $1.13... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the industry are moderate and the level of competition from international players is high. Opportunities in niche markets exist but having access to the latest technology, either in-house or through links with global suppliers/players is important. Research and development costs are high in general. Barriers to entry for high-volume, low-value products (such as hand-operated power tools) are high due to the small size of the Australian market. To compete in these markets there is a need to build manufacturing facilities capable of high-volume, low-cost production and a need to develop brand recognition in order to competitively service global markets... purchase to read more