Solid downstream market conditions buoy industry performance
Melbourne, Australia (PRWEB) August 15, 2012
Revenue and profitability growth have flowed freely in the Fluid Power Equipment Distributors industry Australia. An unprecedented resources boom in Australia since the mid-2000s has stimulated demand for fluid power equipment used by miners and oil and gas companies. According to IBISWorld industry analyst Steven Connell, “Growth has also been supported by solid conditions across other key downstream markets including freight and transport, agriculture and water treatment.” Industry profitability is estimated to rise to 8.6% of revenue in 2012-13, buoyed by robust sales to the mining sector and a soaring currency, which reduced the cost of imported equipment. Another strong year is expected for the industry in 2012-13, with revenue forecast to rise by 3.6%. IBISWorld estimates industry revenue will increase at a compound annual rate of 2.9% over the five years through 2012-13 to $2.56 billion.
Market share concentration in the industry is low, primarily due to the large range of products the industry sells. With the products modelled to meet different power needs of its varied major markets, firms typically are specialist providers. The major companies in the industry are Tyco Flow Control International, Weir Group, Custom Fluidpower and Berendsen Fluid Power. “Not one company controls a large enough market share to influence market price of products, however firms that serve large markets such as mining will typically have a larger market share,” Connell adds.
The Fluid Power Equipment Distributors industry in Australia will remain in a strong position during the next five years. While the resources sector has past the peak of its cycle, a steady flow of investment will continue into the mining and gas industries for the next five years, stimulating demand for hydraulic equipment used in minerals processing, mine dewatering and gas pipelines. Strengthening downstream demand from the construction, agricultural, water treatment and transport sectors should also contribute to the industry's strong growth path over the five years through 2017-18. The automotive and aviation industries will prove a drag on industry growth. Technology in the industry is continuing to evolve as fluid power is being used for a wider range of applications. For more information, visit IBISWorld’s Fluid Power Equipment Distributors report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry distribute fluid power equipment (e.g. pumps, hoses, motors and accessories) primarily to industrial industries for the generation and transfer of hydraulic and pneumatic power in a range of systems.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.