Off the boil: Falling demand from key markets has hurt industry revenue

The Boiler and Tank Manufacturing industry supplies products to customers across many sectors, including mining, construction, manufacturing and agriculture. Deteriorating demand for silos and hoppers from grain growers, and the declining performance of mining and refining have had a negative effect on the industry over the past five years. Solid demand for large-scale boilers used for heating commercial and apartment buildings has failed to offset the adverse demand from the key industrial markets over the past five years.Industry revenue is expected to decline by an annualised 8.9% over the five years through 2017-18, to total $813.0 million...read more.

Industry Statistics & Market Size
Revenue
$813m
Annual Growth 13-18
-8.9%
Forecast Growth 18-23
Profit
Employment
4,070
Businesses
1,470
Market Share of Companies

Industry Threats & Opportunities

  • Falling domestic demand has driven down the industry’s performance
  • Import penetration has risen due to the popularity of low-cost boilers and tanks from overseas
  • Demand from the agriculture, mining, manufacturing and construction markets is forecast to improve
  • Industry Report - Industry Key Buyers Chapter

    The Boiler and Tank Manufacturing industry is highly fragmented and has very few large-scale players. Most enterprises employ fewer than 20 people (97.7%) and most businesses generate annual revenue of less than $200,000 (68.3%). The largest 6.4% of enterprises generate annual revenue exceeding $2.0 million. The four largest industry firms are estimated to account for less than 20.0% of industry revenue in 2017-18.The largest firms have little influence over industry pricing and are generally unable to maintain profit margins higher than the industry average. Industry concentration is estimated to have increased marginally in the past five years as several larger players have expanded through strategic acquisitions. For...purchase to read more.

    Additional Insights for the Boiler and Tank Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Boiler and Tank Manufacturing Industry are

  • Ability to compete on tender
  • Ability to expand and curtail operations in line with market demand
  • Access to multiskilled and flexible workforce
  • IBISWorld analysts also discuss how external factors such as Demand from food product manufacturing and Demand from grain growing in the Boiler and Tank Manufacturing industry impact industry performance..

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    What's in this report

    What is the Boiler and Tank Manufacturing Industry?

    Firms in the industry manufacture metal boiler and tank products, including steam boilers, pressure tanks, storage tanks and other metal containers, from heavy gauge metals. These products are used by a range of downstream industries, including industrial and manufacturing.

    Industry Products
  • Packaged boilers
  • Water boilers
  • Other boilers
  • Storage tanks
  • Mixing tanks
  • Fuel tanks
  • Other tanks
  • Industry Activities
  • Metal boiler
  • Metal farm storage tank
  • Gas cylinder
  • Metal vat and tank
  • Metal silo
  • Steam generating boiler
  • Steam superheater
  • Metal storage tank
  • 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 food product manufacturing
  • Demand from grain growing
  • Demand from non-residential building construction
  • Demand from petroleum and coal product manufacturing
  • Actual capital expenditure on mining
  • Demand from mining
  • Domestic price of iron and steel

  • Current Performance
  • Industry revenue
  • Import penetration
  • Key demand drivers
  • Industry profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Key demand drivers
  • Import growth
  • Profit stabilises
  • Table: Boiler and Tank Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Boiler and Tank Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grain Growing
  • Mining
  • Construction
  • Farm and Construction Machinery Wholesaling
  • Mining and Industrial Machinery Wholesaling

  • Key Selling Industries
  • Iron Smelting and Steel Manufacturing
  • Paint and Coatings Manufacturing
  • Power Automation Products and Other Electrical Equipment Manufacturing
  • Pump and Compressor Manufacturing
  • Steel Pipe and Tube Manufacturing

  • Products & Services
  • Storage tanks
  • Water boilers
  • Packaged boilers
  • Fuel tanks
  • Other boilers
  • Mixing tanks
  • Other tanks
  • Chart: Boiler and Tank Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Commercial builders and developers
  • Food and beverage manufacturers
  • Mining and energy sector
  • Petroleum and chemical manufacturers and refineries
  • Agricultural sector
  • Automotive manufacturers
  • Other manufacturers
  • Households and other businesses
  • Chart: Major Market Segmentation for the Boiler and Tank Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Boiler and Tank Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Boiler and Tank Manufacturing Industry

  • Industry Globalization
    Ahrens Group Pty Ltd,
  • Table: Ahrens Group Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Boiler and Tank 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 Boiler and Tank Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Btu
  • British Thermal Units are the unit of measurement for heat created by burning material. One BTU is equivalent to 1055 joules of energy.
  • Packaged Boilers
  • Packaged boilers are standardised, complete boilers that are delivered to the required facility and connected to applicable services to become operational.
  • Tanks
  • Tanks produced by the industry include specialised metal storage tanks for a range of products, such as liquids (fuels and beverages) and solid items (grain and chemicals).
  • Water Tube Boilers
  • Water tube boilers create steam when water is heated inside its boiler drum, using oil or gas as fuel. They are often custom-made and are used to produce high amounts of steam and pressure.
  • What Our Customers Say

    Why buy this report?

    The Boiler and Tank 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 Boiler and Tank 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 Boiler and Tank 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 Boiler and Tank Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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