The wrong tools: Intense and increasing import competition has drilled into industry revenue

The Machine Tool and Parts Manufacturing industry includes the production of a range of woodworking tools, metalworking machinery and other equipment. The industry has contracted over the past five years due to difficult operation conditions. Falling demand from the mining and manufacturing sectors, in combination with intense import pressure, is expected to reduce industry revenue by a compound annual rate of 1.4% over the five years through 2017-18. Revenue is expected fall by 2.2% in the current year to $1.16 billion.Demand for industry goods has been affected over the past five years by lower capital expenditure in the mining and manufacturing sectors...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
-1.4%
Forecast Growth 18-23
Profit
Employment
4,712
Businesses
1,045
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 Key Buyers Chapter

    The Machine Tool and Parts Manufacturing industry is characterised by low market share concentration. The top four firms are expected to account for 29.7% of industry revenue in 2017-18. Industry operators tend to be dominant producers in their product categories. However, the industry's broad scope of goods precludes any single entity from becoming a dominant player. According to the ABS, only 11.6% of businesses have an annual turnover in excess of $2 million. Small-scale businesses are common in the industry, with 96.9% of enterprises employing less than 20 staff. This suggests that most industry firms typically specialise in single product lines. These firms tend to operate on short-term contracts with a variety of downstream firms. For...purchase to read more.

    Additional Insights for the Machine Tool and Parts Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Machine Tool and Parts Manufacturing Industry 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 Trade-weighted index and Total capital expenditure 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
  • Trade-weighted index
  • Total capital expenditure
  • Actual capital expenditure on mining

  • 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
  • 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
    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
    Computer Numeric Controls (Cnc)
  • Computer numeric controls are machine tools that are 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 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 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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