More bust than boom: Weak demand from mining markets has subdued industry revenue

The Explosives Manufacturing industry's performance is tied to Australia's resources sector. Industry operators provide almost three million tonnes of blasting explosives to Australia's mining and quarrying sectors each year. The industry therefore indirectly benefited from Australia's resources commodity boom. In particular, robust demand from the thermal coal market, capacity expansions across various mining industries and strong ammonium nitrate prices drove historic growth over much of the decade through 2012-13. However, revenue then dropped away from 2013-14 through 2016-17, as falling commodity prices and excess supply negatively affected demand from the Mining more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • The industry’s performance is tied to Australia’s resource sector
  • New technologies allow blast modelling to improve accuracy and energy efficiency
  • Revenue volatility should fall as the mining sector increases extraction volumes
  • Industry Report - Industry Investment Chapter

    The Explosives Manufacturing industry has a high level of capital intensity. The industry spends an estimated $1.75 on labour for every dollar invested in new capital. Considerable set-up and establishment costs, highly specialised technical requirements, the need for a skilled labour force and a growing reliance on innovative technology all contribute to the industry's high level of capital intensity.Over the next five years, the industry is anticipated to continue channelling resources into the development of more effective and technologically advanced explosives, which will result in greater capital expenditure. This trend will likely be driven by increasingly complex geological mining conditions and the expected growth in demand for environmentally friendlier mining products...purchase to read more.

    Additional Insights for the Explosives Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Explosives Manufacturing are:

  • Having contracts which are favourable to purchaser
  • Effective cost controls
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Demand from coal mining and Demand from metal ore mining in the Explosives Manufacturing industry impact industry performance..

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    What's in this report

    What is the Explosives Manufacturing Industry?

    Industry companies manufacture explosives. The industry’s main product is commercial explosives, including ammonium nitrate-based explosives. Other products manufactured include initiating systems, propellants, pyrotechnic products such as fireworks and flares, and explosives for military use. Industry participants also produce accessories such as blasting and detonating caps, fuses, cords and detonators.

    Industry Products
  • Commercial explosives
  • Initiating explosives
  • Other products
  • Accessories
  • Pyrotechnic products
  • Industry Activities
  • Blasting powder
  • Detonator and fuse
  • Dynamite
  • Fireworks
  • Ammonium nitrate and cellulose nitrate
  • Matches and other pyrotechnic product
  • Propellant powder and gun cotton
  • Signal flare
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from coal mining
  • Demand from metal ore mining
  • Demand from gravel and sand quarrying
  • Trade-weighted index

  • Current Performance
  • Capacity changes
  • Changing product profile
  • Volatile margins and prices
  • Chart: Revenue Growth

  • Industry Outlook
  • Product and service innovation
  • Regulatory changes
  • Table: Explosives Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Explosives Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Road and Bridge Construction
  • Heavy Industry and Other Non-Building Construction
  • Site Preparation Services
  • Defence

  • Key Selling Industries
  • Basic Inorganic Chemical Manufacturing
  • Fertiliser Manufacturing
  • Industrial Gas Manufacturing

  • Products & Services
  • Commercial explosives
  • Initiating explosives
  • Accessories
  • Pyrotechnic products
  • Other products
  • Chart: Explosives Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Coal mining industries
  • Metal mining industries
  • Quarry and construction industries
  • Other markets
  • Chart: Major Market Segmentation for the Explosives Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Explosives Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Explosives Manufacturing Industry

  • Industry Globalization
    Orica Limited, Incitec Pivot Limited,
  • Table: Orica Limited - financial performance
  • Table: Incitec Pivot Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Explosives Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Explosives Manufacturing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Ammonium Nitrate-Fuel Oil (Anfo)
  • One of the most commonly used commercial explosives.
  • Blasting Cap
  • A small explosive device generally used to detonate a larger, more powerful explosive such as dynamite. Most blasting caps contain a primary explosive.
  • Detonating Cord
  • High-speed fuse that is used in detonating high explosives.
  • Explosives
  • Chemical compounds or mixtures that burn or decompose rapidly, generating large amounts of gas, heat and pressure.
  • What Our Customers Say

    Why buy this report?

    The Explosives Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Explosives Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Explosives Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Explosives Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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