Industry Analysis & Industry Trends
Other manufacturers use almost three-quarters of products made by the Industrial Machinery Manufacturing industry. This includes products such as ball bearings to industrial furnaces, which are widely used in the manufacturing sector. Other products manufactured in this industry include sporting equipment and water filtration systems.
For the past five years, the industry has been in decline. Industry revenue is expected to shrink by 3.0% per annum over the five years through 2012-13. The gradual removal of tariffs and the emergence of low-cost manufacturing hubs in developing economies have caused the manufacturer of textiles, automobiles and other products to head offshore... purchase to read more
Industry Report - Industry Investment Chapter
The Industrial Machinery Manufacturing industry is characterised by extremely fragmented operations. Capital intensity depends mainly on the company's production methods and end-products. Companies that operate in commercial machinery manufacturing such as water filters are likely to have higher level of capital intensity compared to a more labour intensive furnace manufacturing.
Overall, the industry has a low level of capital intensity. For every $1.00 invested in capital an estimated $16.16 is spent on wages. Labour costs in the industry are relatively high when compared with similar manufacturing industries. This could be due to a number of reasons, the most likely being the absence of a really dominant player driving innovation and research... purchase to read more