Turn of the screw: Intense and increasing import competition has drilled into industry revenue

The Machine Tool and Parts Manufacturing industry includes producing a range of woodworking tools, metalworking machinery and other equipment. The industry has contracted over the past five years due to difficult operating conditions. Falling demand from the construction and manufacturing sectors, in combination with intense import pressure, has hindered industry revenue growth. Overall, industry revenue is expected to increase at an annualised 0.6% over the five years through 2018-19. Revenue is expected to fall by 7.4% in the current year to $1.3 billion.Lower capital expenditure in the mining and manufacturing sectors has affected demand for industry goods over the past five years...read more.

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

Industry Threats & Opportunities

  • Lower capital expenditure in the mining and manufacturing sectors has slowed industry demand
  • Exports have increased as a share of industry revenue over the past five years
  • Firms will likely focus on innovation to enhance product value and overcome import competition
  • Industry Report - Industry Locations Chapter

    The Machine Tool and Parts Manufacturing industry's geographic spread is closely correlated with Australia's population and economic activity. Most enterprises are on the eastern seaboard, close to major ports and downstream markets. In particular, Victoria and New South Wales (the traditional base of Australian manufacturing) make up an estimated 63.9% of industry enterprises. A large proportion of construction activity is also located in these states, as it generally follows the population distribution. Over the past year, enterprise growth in these states has been limited due to lower demand from downstream construction and manufacturing markets. Outside of the eastern seaboard states, Western Australia and South Australia make up the majority of remaining industry activity. Tog...purchase to read more.

    Additional Insights for the Machine Tool and Parts Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Machine Tool and Parts Manufacturing are:

  • Establishment of export markets
  • Undertaking technical research and development
  • Provision of superior after-sales service
  • IBISWorld analysts also discuss how external factors such as Demand from manufacturing and Trade-weighted index in the Machine Tool and Parts Manufacturing industry impact industry performance..

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    What's in this report

    What is the Machine Tool and Parts Manufacturing Industry?

    Industry companies primarily manufacture woodworking or metalworking machinery and equipment, or specialised parts for this equipment. Enterprises that mainly manufacture pneumatic or power-operated hand tools are also included in the industry.

    Industry Products
  • Power-operated hand tools
  • Non-metalworking machine tools
  • Wood and metalworking machinery
  • Metal dies, die sets and moulds
  • Accessories for power-operated tools
  • Other products
  • Industry Activities
  • Die and metalworking hand or machine tool
  • Drilling machinery
  • Portable electric drill
  • Forging machinery
  • Pneumatic and power-operated hand tool
  • Lathe
  • Machine tool attachments or parts
  • Milling machine
  • Mould making machinery
  • Welding or cutting equipment
  • 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 manufacturing
  • Trade-weighted index
  • Total capital expenditure
  • Actual capital expenditure on mining
  • Demand from construction

  • Current Performance
  • Industry demand
  • International trade
  • Profit
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry innovation
  • Downstream conditions
  • Exports and imports
  • Profit
  • Participation
  • Table: Machine Tool and Parts Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Machine Tool and Parts Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Wooden Structural Component Manufacturing
  • Automotive Electrical Component Manufacturing
  • Industrial Machinery Manufacturing
  • Construction

  • Key Selling Industries
  • Power Automation Products and Other Electrical Equipment Manufacturing
  • Telecommunications and Other Electrical Goods Wholesaling

  • Products & Services
  • Metal dies, die sets and moulds
  • Accessories for power-operated tools
  • Other products
  • Wood and metalworking machinery
  • Power-operated hand tools
  • Non-metalworking machine tools
  • Chart: Machine Tool and Parts Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Export markets
  • Manufacturing companies
  • Construction companies
  • Mining companies
  • Wholesalers, retailers and other markets
  • Chart: Major Market Segmentation for the Machine Tool and Parts Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Machine Tool and Parts Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Machine Tool and Parts Manufacturing Industry

  • Industry Globalization
    ANCA Pty Ltd, Victor Technologies Australia Pty Ltd,
  • Table: ANCA Pty Ltd - financial performance
  • Table: Victor Technologies Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Machine Tool and Parts 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 Machine Tool and Parts 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
    Computer Numeric Control (Cnc)
  • Computer numeric control is a machine tool that is controlled automatically using computerised systems.
  • Lathe
  • A machine for shaping a piece of material, such as wood or metal, by rotating it rapidly along its axis while pressing a fixed cutting tool against it.
  • Selective Laser Melting (Slm)
  • A manufacturing process that uses digital data to create 3D metal parts using a high-power laser beam, by fusing fine metal powders together.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Machine Tool and Parts Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Machine Tool and Parts 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 Machine Tool and Parts 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 Machine Tool and Parts Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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