Industry Analysis & Industry Trends
The Conveyor and Crane Manufacturing industry has performed well despite enduring significant setbacks due to the global financial crisis. The return of growth in the industry is largely attributed to booms in mining and construction sectors of the economy and their flow-on effects to the wider economy. Robust activity in the Mining division has contributed much to industry growth over the past five years. Similarly, recovery in construction and freight markets has stimulated demand for conveyor systems, forklifts, cranes and elevators.
The industry hit its nadir in 2009-10 due to the global financial crisis. The fall in construction activities in Australia resulted in declining demand for products in the industry. This resulted in the compound annual rate dropping to 1.3%... purchase to read more
Industry Report - Industry Investment Chapter
Conveyor and crane manufacturing requires a Moderate level of capital investment, as measured by the capital to labour ratio. IBISWorld estimates that the capital to labour ratio in this industry is 0.18 in 2012-13, meaning that for every $1.00 paid in wages, manufacturers require only $0.18 worth of capital expenditure. Labour still makes a large part of production, as most clients will require customisations on their orders.
Unlike foreign manufacturers, Australian operators tend to concentrate on niche markets and customised job orders instead of volume production line processes. Most equipment that is standard and produced in large volumes requires a high level of capital to manufacture is imported from major OECD countries (e.g. the United States, Japan and Germany)... purchase to read more