Hosed down: Declining demand from downstream markets has reduced industry revenue

The Fluid Power Equipment Distributors industry supplies a range of products, including hydraulic pumps, air compressors, valves and gauges, to customers across numerous downstream markets. The spread of products and markets the industry supplies usually helps stabilise its long-term growth. However, the industry has been exposed to the Mining division's dramatic demand slump over the past five years. Additionally, sales to the Manufacturing subdivision have been steadily deteriorating as local firms have struggled to compete against strong import penetration.The resources boom fuelled unprecedented demand for hydraulic equipment used in mineral processing, mine dewatering and gas pipelines...read more.

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

Industry Threats & Opportunities

  • The industry has been exposed to the Mining division's dramatic demand slump in recent years
  • Favourable trends in the agricultural and freight transport markets have aided industry demand
  • Demand from the mining and construction markets will underpin industry revenue growth
  • Industry Report - Starting a New Business Chapter

    The industry exhibits moderate barriers to entry, and these have remained steady over the past five years. One significant barrier is the acquisition of operating distribution agreements from reputable manufacturers. To successfully win and maintain a contract with an established brand name, distributors have to show proof of capabilities and compliance as set out in the contract.While many new entrants operate as branches of existing players or distributors for recognised brands, there is some capacity for the entry of independent firms to exploit niche markets or to develop a competitive position in supplying an existing market. Establishment numbers are projected to fall by an annualised 0.6% over the five years through 2018-19, before climbing by an annualised 0.3% o...purchase to read more.

    Additional Insights for the Fluid Power Equipment Distributors Industry

    IBISWorld has determined the most important Key Success Factors for the Fluid Power Equipment Distributors are:

  • Ability to control stock on hand
  • Provision of superior after sales service
  • Supply contracts in place for key inputs
  • IBISWorld analysts also discuss how external factors such as Private capital expenditure on machinery and equipment and Actual capital expenditure on mining in the Fluid Power Equipment Distributors industry impact industry performance..

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    What's in this report

    What is the Fluid Power Equipment Distributors Industry?

    Industry operators distribute fluid power equipment, such as pumps, hoses, valves and accessories, primarily to industrial industries for generating and transferring hydraulic and pneumatic power in a range of systems. Industry firms may operate across various stages of the supply chain, including manufacturing, wholesaling and direct-to-public retailing.

    Industry Products
  • Hydraulic pumps
  • Air compressors
  • Manifolds, hoses and tubes
  • Instruments
  • Valves
  • Other products
  • Industry Activities
  • Hydraulic equipment and wholesaling
  • Pneumatic equipment and wholesaling
  • Integrated system selection and wholesaling
  • System consultation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Private capital expenditure on machinery and equipment
  • Actual capital expenditure on mining
  • Demand from construction
  • Demand from mining
  • Trade-weighted index
  • Demand from road freight transport

  • Current Performance
  • Demand from mining firms
  • Demand from other markets
  • Profitability and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Diverse growth markets
  • Profitability improves
  • Table: Fluid Power Equipment Distributors Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fluid Power Equipment Distributors Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Manufacturing
  • Electricity, Gas, Water and Waste Services
  • Transport, Postal and Warehousing
  • Port Operators
  • Engineering Consulting

  • Key Selling Industries
  • Measurement and Other Scientific Equipment Manufacturing
  • Natural Rubber Product Manufacturing
  • Pump and Compressor Manufacturing

  • Products & Services
  • Hydraulic pumps
  • Air compressors
  • Manifolds, hoses and tubes
  • Instruments
  • Valves
  • Other products
  • Chart: Fluid Power Equipment Distributors Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Mining, oil and gas industries
  • Electricity, water and waste industries
  • Transport industries
  • Manufacturing division
  • Construction division
  • Agricultural industries
  • Other markets
  • Chart: Major Market Segmentation for the Fluid Power Equipment Distributors 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 Fluid Power Equipment Distributors

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fluid Power Equipment Distributors Industry

  • Industry Globalization
    Weir Group (Australian Holdings) Pty Limited,
  • Table: Weir Group (Australian Holdings) Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fluid Power Equipment Distributors 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 Fluid Power Equipment Distributors Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Computer aided design and computer aided manufacturing refers to software systems used to facilitate both the design and manufacturing of products.
  • Fluid Power
  • The use of fluids under pressure to generate, control and transmit power. Fluid power is subdivided into hydraulics using a liquid and pneumatics using a gas.
  • Hydraulic
  • Hydraulic machinery moves or is moved by fluids. Hydraulic power is the generation and manipulation of energy systems using pressurised liquid.
  • Pneumatic
  • Pneumatically powered machinery is operated by pressurised gas.
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    Why buy this report?

    IBISWorld’s Fluid Power Equipment Distributors 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.

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    This report on Fluid Power Equipment Distributors:
    • 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 Fluid Power Equipment Distributors 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 Fluid Power Equipment Distributors, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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