Recoiling revenue: Leaping import competition is supressing the industry's performance

The Spring and Wire Product Manufacturing industry is in the decline phase of its life cycle, with both revenue and industry participation falling over the long term. Most industry product lines are well established, with limited scope for any market expansion and a growing exposure to low-priced imports.Industry revenue is expected to decline at an annualised 1.4% over the five years through 2016-17, to reach $1.1 billion. Domestic demand for spring, wire, fencing and wire rope products has contracted over the past five years in response to subdued demand from building markets and weaker sales to downstream manufacturers, particularly motor vehicle manufacturers. The industry's performance has also been weakened by intensifying import penetration...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 12-17
-1.4%
Forecast Growth 17-22
x.x%lock
Profit
x.x%lock
Employment
3,325
Businesses
360
Market Share of Companies

Industry Threats & Opportunities

  • The industry's performance has been contained by the loss of market share to import penetration
  • The current slump in construction activity has driven down demand for wire products
  • Improved demand from the key building markets will be outweighed by the loss of sales to imports

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    Industry Report - Industry Locations Chapter

    The bulk of industry manufacturing enterprises are located in the populous eastern seaboard states of New South Wales, Victoria and Queensland. This is close to the concentration of light manufacturing and general building activity and near key transport hubs for distribution to other markets, notably by rail.New South Wales accounts for the largest share of total enterprises and one-third of employer enterprises. This is roughly in line with the state's share of Australia's population and GDP. New South Wales includes several of the largest industry enterprises, such as the Arrium wire mills at Newcastle and Jindera, along with WRI Australia's wire rope operations in Newcastle. Aus...purchase to read more.

    Additional Insights for the Spring and Wire Product Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Spring and Wire Product Manufacturing Industry are

  • Having a wide and expanding product range
  • Upstream vertical integration (ownership links)
  • Effective cost controls

    • IBISWorld analysts also discuss how external factors such as Demand from construction and Demand from mining in the Spring and Wire Product Manufacturing industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Spring and Wire Product Manufacturing Industry?

    Industry firms primarily manufacture wire or wire products, cable, wire netting, nails or rolled steel fence posts.

    Industry Products
  • Wire and fencing products
  • Wire rope products
  • Springs
  • Other fabricated wire products
    • Industry Activities
  • Wire product
  • Spring
  • Welded link chain and other chain (except forged, cast or sprocket chain)
  • Rolled steel fence post
  • Nail and skewer
  • Safety pin
  • Wire screen, netting and mesh (excluding reinforcing mesh)
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Demand from construction
  • Demand from mining
  • Demand from agriculture
  • Domestic price of iron and steel
  • Demand from furniture manufacturing

    • Current Performance
  • Chart: Revenue Growth

    • Industry Outlook
  • Table: Spring and Wire Product Manufacturing Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Spring and Wire Product Manufacturing Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Agriculture, Forestry and Fishing
  • Mining
  • Motor Vehicle Manufacturing
  • Wooden Furniture and Upholstered Seat Manufacturing
  • Mattress Manufacturing
  • Construction

    • Key Selling Industries
  • Iron Smelting and Steel Manufacturing

    • Products & Services
  • Wire and fencing products
  • Other fabricated wire products
  • Springs
  • Wire rope products
  • Chart: Spring and Wire Product Manufacturing Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Construction firms
  • Mining firms
  • Manufacturing firms
  • Agriculture firms
  • Other firms
  • Automotive manufacturing and repair firms
  • Chart: Major Market Segmentation for the Spring and Wire Product Manufacturing Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profitability
  • Purchases
  • Freight
  • Wages
  • Depreciation and rent
  • Other operating costs
  • Chart: Cost Structure Benchmarking – Sector vs Spring and Wire Product Manufacturing

    • Basis of Competition
  • Internal competition
  • External competition

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Spring and Wire Product Manufacturing Industry

    • Industry Globalization

    Major Companies

    Arrium Limited, Bekaert (Australia) Pty Limited,
  • Table: Arrium Limited - financial performance
  • Table: Bekaert (Australia) Pty Limited - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Spring and Wire 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

    Key Statistics

    Table: Industry Data for the Spring and Wire Product Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Compression Spring
  • A type of coiled spring with space between the successive coils. When force is applied to shorten the spring, the coils are pushed closer together.
    • Leaf Spring
  • A type of spring system commonly used for vehicle suspension (dating back to medieval times). Typically involving multi-layered arcs attached to the axle.
    • Torsion Spring
  • A type of coiled spring designed to resist the applied force. When force is applied, the spring twists the coil into a tighter spiral (e.g. the spring found in a clipboard).
    • What Our Customers Say
    Why buy this report?

    The Spring and Wire Product 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 Spring and Wire 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 Spring and Wire 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 Spring and Wire 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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