Industry Analysis & Industry Trends
Machine tool wholesalers generally purchase industry goods from manufacturers and onsell these to final customers. Most industry players are diverse wholesalers that specialise in a range of products, with machine tools comprising a single product segment. The industry is currently facing several challenges as it adapts to the shift in the economy from mining to more traditional manufacturing. In particular, there is a looming threat of wholesale bypass, where clients purchase their products directly from manufacturers. Some of the industry's more successful operators are expected to avoid price wars and instead focus on increasing their value proposition for clients.
Industry revenue is expected to decline at an annualised 0.5% over the five years through 2015-16 to reach $1.5... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The industry is in the declining phase of its life cycle. Industry valued added is forecast to decrease at an annualised 0.1% over the ten years through 2020-21. This is in contrast to the forecast annualised GDP growth rate of 2.6% over the same period. This shows that the industry will account for a smaller proportion of the national economy in 2020-21 than it did in 2010-11.
The industry decline is primarily caused by diminishing demand from downstream industries in the past five years. A majority of customers are manufacturing businesses, which have been struggling to attain growth over the five years through 2015-16. Australia as a whole is currently transitioning to a service-based economy, which is expected to put further pressure on manufacturers... purchase to read more