Steel in it: Industry revenue has been volatile due to shifting demand conditions

The Steel Pipe and Tube Manufacturing industry's performance has been mixed over the past five years. Although industry revenue is expected to grow at an annualised 2.2% over the five years through 2017-18, this growth has demonstrated significant volatility. The industry has been affected by declining demand from the manufacturing and mining markets, although demand from construction has enabled some growth. Industry firms that conduct export operations have also been negatively affected by greater competition in the global market, particularly from low-cost producers in Asia. The industry's profit margins have declined over the past five years, due to declining domestic demand and rising input costs...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
2.2%
Forecast Growth 18-23
Profit
Employment
2,047
Businesses
181

Industry Threats & Opportunities

  • Lower demand from manufacturing industries has limited industry growth over the past five years
  • Profit is volatile and influenced by import competition, downstream demand and input costs
  • Exports are projected to decline as a share of revenue over the next five years
  • Industry Report - Industry Investment Chapter

    The Steel Pipe and Tube Manufacturing industry is moderately capital-intensive. For every dollar spent on capital costs, an estimated $3.47 is spent on wages. Large-scale companies require high capital investment, to further boost economies of scale by decreasing marginal costs, which allows firms to compete with other local companies and overseas manufacturers. However, smaller operators tend to be more labour-intensive, as they do not have the funds to invest heavily in capital equipment.Industry machinery typically depreciates slowly compared with other manufacturing industries, as it is generally not as technologically advanced. This trend slightly reduces capital costs, contributing to the industry's moderate capital intensity. Ove...purchase to read more.

    Additional Insights for the Steel Pipe and Tube Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Steel Pipe and Tube Manufacturing Industry are

  • Ability to quickly adopt new technology
  • Having links with suppliers
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Demand from construction and Demand from household appliance manufacturing in the Steel Pipe and Tube Manufacturing industry impact industry performance..

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    What's in this report

    What is the Steel Pipe and Tube Manufacturing Industry?

    Industry firms primarily manufacture seamless or welded steel pipes and tubes, or ferrous metal pipe and tube fittings. Firms that mainly use cast or forged iron and steel are excluded from the industry.

    Industry Products
  • Small-diameter welded pipes and tubes
  • Large-diameter welded pipes and tubes
  • Seamless pipes and tubes
  • Stainless steel pipes and tubes
  • Pipe fittings and other products
  • Industry Activities
  • Cold drawn steel pipe and tube
  • Galvanised welded and seamless steel pipe and tube
  • Ferrous metal fitting, valve and part (except cast or forged iron and steel)
  • Hot rolling pipe and tube
  • 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 construction
  • Demand from household appliance manufacturing
  • Domestic price of iron and steel
  • Demand from mining
  • Demand from motor vehicle parts and accessories manufacturing
  • Trade-weighted index

  • Current Performance
  • Revenue and profitability
  • Structural changes
  • International Trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Downstream manufacturers
  • International trade
  • Table: Steel Pipe and Tube Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Steel Pipe and Tube Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Motor Vehicle Manufacturing
  • Gas Supply
  • Water Supply
  • Construction
  • Pipeline Transport

  • Key Selling Industries
  • Iron Smelting and Steel Manufacturing
  • Machine Tool and Parts Manufacturing

  • Products & Services
  • Small-diameter welded pipes and tubes
  • Large-diameter welded pipes and tubes
  • Seamless pipes and tubes
  • Pipe fittings and other products
  • Stainless steel pipes and tubes
  • Chart: Steel Pipe and Tube Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Construction companies
  • Manufacturers
  • Export markets
  • Mining companies
  • Chart: Major Market Segmentation for the Steel Pipe and Tube 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 Steel Pipe and Tube Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Steel Pipe and Tube Manufacturing Industry

  • Industry Globalization
    OneSteel Trading Pty Limited, BlueScope Steel Limited,
  • Table: OneSteel Trading Pty Limited - financial performance
  • Table: BlueScope Steel Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Steel Pipe and Tube 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 Steel Pipe and Tube 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
    Billet
  • A length of steel that has a round or square cross-section.
  • Coalescence
  • The merging of two segments into one.
  • Eccentricity
  • Symmetrical inconsistencies, such as differing wall thickness, that can occur during the production of seamless pipes and tubes.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Steel Pipe and Tube Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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
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    This report on Steel Pipe and Tube 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 Steel Pipe and Tube 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 Steel Pipe and Tube Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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