Steeling themselves: Operators brace for tough conditions as imports dominate the market

Competition from low price imports and non-metal substitute products has severely constrained the Fabricated Metal Product Manufacturing industry's performance over the past five years. Local manufacturers have found it increasingly difficult to match the prices of imports from foreign companies that operate with lower wage and overhead costs and have greater economies of scale. Domestic demand for fabricated metal products is projected to decline over the five years through 2018-19, reflecting the industry's loss of market share to imports. Imports are projected to capture 62.1% of domestic demand in 2018-19, up from 56.2% in 2013-14...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 14-19
-4.8%
Forecast Growth 19-24
Profit
Employment
16,925
Businesses
3,550
Market Share of Companies

Industry Threats & Opportunities

  • Increasing import penetration and product substitution have constrained revenue growth
  • Larger firms have acquired small operators to expand their scale and scope
  • Solid growth in downstream building construction markets should help support domestic demand
  • Industry Report - Industry Investment Chapter

    The industry has a low level of capital intensity of production and the capital requirement has remained stable over the past five years. The degree of capital intensity varies depending on the scale of the operation and the main product segments. The labour intensity tends to be higher for manufacturers producing bespoke products while the capital intensity tends to be higher for larger-scale manufacturers producing high-volume fabricated metal products.The industry has a significant labour requirement, with direct employment costs absorbing about one-quarter of annual revenue (25.2% in 2018-19) while the industry's capital requirement is evident in depreciation charges absorbing 2.2% of revenue. This indicates the industry currently allocates an estimated $11.45 o...purchase to read more.

    Additional Insights for the Fabricated Metal Product Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fabricated Metal Product Manufacturing Industry are

  • Economies of scale
  • Establishment of brand names
  • Ability to alter goods and services produced in favour of market conditions
  • IBISWorld analysts also discuss how external factors such as Demand from building construction and Demand from industrial machinery manufacturing in the Fabricated Metal Product Manufacturing industry impact industry performance..

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    What's in this report

    What is the Fabricated Metal Product Manufacturing Industry?

    Industry firms primarily manufacture metal hand tools, general hardware and other fabricated metal products. Products include door handles, bathroom fittings, cutlery, razors, knives, firearms, ammunition, locks and safes.

    Industry Products
  • Non-ferrous pipe fittings
  • Household products
  • Construction products
  • Ammunition, firearms and other ordnance
  • Security products
  • Hand tools and general hardware
  • Industry Activities
  • Ammunition, firearm and ordnance
  • Fitting, valve and valve part
  • Drill, hand tool and garden tool (except pneumatic or power operated)
  • Pipe and tube fitting
  • Safe, key and locking hardware
  • Aluminium mast and tackle block
  • Metal turnstile and tubing
  • Knife, cutlery, razor and scissor
  • Non-ferrous metal pipe fitting
  • 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 building construction
  • Demand from industrial machinery manufacturing
  • Real household discretionary income
  • Domestic price of iron and steel
  • Dwelling commencements
  • Trade-weighted index

  • Current Performance
  • Profitability tightens
  • Key downstream markets
  • Competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Improving demand
  • Profitability
  • Competitive pressures
  • Table: Fabricated Metal Product Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fabricated Metal Product Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Explosives Manufacturing
  • Construction
  • Defence
  • Hardware and Building Supplies Retailing

  • Key Selling Industries
  • Aluminium Rolling, Drawing and Extruding
  • Aluminium Smelting
  • Iron Smelting and Steel Manufacturing
  • Non-Ferrous Metal Casting

  • Products & Services
  • Construction products
  • Other
  • Household products
  • Security products
  • Hand tools and general hardware
  • Ammunition, firearms and other ordnance
  • Non-ferrous pipe fittings
  • Chart: Fabricated Metal Product Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Construction companies
  • Manufacturers
  • Wholesalers and general retailers
  • Hardware retailers
  • Governments and military organisations
  • Other customers
  • Chart: Major Market Segmentation for the Fabricated Metal Product 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 Fabricated Metal Product Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fabricated Metal Product Manufacturing Industry

  • Industry Globalization
    ASSA ABLOY Australia Pacific Pty Limited,
  • Table: ASSA ABLOY Australia Pacific Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fabricated Metal Product 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 Fabricated Metal Product Manufacturing Industry
    Includes:
  • 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
    Non-Ferrous Metal
  • A metal that does not contain appreciable amounts of iron.
  • Ordnance
  • Military materials such as weapons, ammunition, combat vehicles and equipment.
  • Tackle Block
  • A pulley system that guides ropes and chains.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Fabricated Metal Product Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Fabricated Metal Product 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 Fabricated Metal Product 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 Fabricated Metal Product Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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