Industry Analysis & Industry Trends
The Industrial Machinery Manufacturing industry encompasses a wide variety of products, including ball bearings, industrial furnaces, sporting machinery and water filtration systems. The industry relies on the performance of its downstream markets, including mining, construction and other manufacturing industries. The industry is highly fragmented and is characterised by a large number of players operating in different segments. Products in each segment tend to be highly homogenised and thus operators tend to compete based on price rather than product quality. Revenue is forecast to rise by an annualised 0.6% in the five years through 2014-15.
Industry revenue is projected to rise by 0.3% in 2014-15, to $2.1 billion... purchase to read more
Industry Report - Industry Investment Chapter
The Industrial Machinery Manufacturing industry is characterised by fragmented operations, given the variety of products produced. Capital intensity depends mainly on the company's production methods and products. Companies that operate in commercial machinery manufacturing, such as water filters, are likely to have higher capital intensity than the more labour-intensive furnace manufacturing.
Overall, the industry has a low level of capital intensity. For every dollar paid for capital, $11.17 is allocated for wages. Labour costs are relatively high compared with similar manufacturing industries. This could be due to a number of reasons, such as the shift to hiring highly skilled employees as companies commit to innovation... purchase to read more