Boiler and Tank Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld

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While subdued demand from downstream manufacturing and construction markets constrains industry growth, demand from mining and agriculture have remained strong. For these reasons, industry research firm IBISWorld has updated its report on the Boiler and Tank Manufacturing industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Industry performance remains subdued due to downward trends in downstream manufacturing industries.

The Boiler and Tank Manufacturing industry’s products are used in a range of downstream industries, including mining, construction, manufacturing and agriculture. IBISWorld industry analyst Anthony Kelly states "since the late 2000s, the industry's performance has been negatively affected by subdued trends in the downstream manufacturing industries, notably the production of food and beverages, oil refining, primary metals, and pulp and paper." The industry's performance has also been influenced by the downward trend in the non-residential building market, which is a key source of demand for commercial boilers used for heating. Nevertheless, the industry has derived stronger demand from mining and agricultural industries.

Over the five years through 2013-14, industry revenue is projected to decline at an annualised 0.6% to $1.0 billion. This represents an increase of 3.0% over the current year due to the improved conditions in the downstream manufacturing market and increased grain production. The performance over the five years reflects the subdued growth in domestic demand for boilers and tanks, by an annualised 0.3% to $1.3 billion, and the increased exposure to import competition, as the value of imports climbed by an annualised 1.8% to account for 22.0% of the local market. The industry's short-term prospects are solid, given the local economy's recovery and a recent depreciation of the Australian dollar. According to Kelly, "demand conditions are expected to deteriorate over the next five years, stemming from slower growth in mining activity and several manufacturing markets (notably refining and steel production) and the greater penetration of imports."

The Boiler and Tank Manufacturing industry has a low level of market share concentration. This low concentration is due to the highly fragmented nature of the industry, particularly across products, customers and industry participants. The largest firms have little influence over industry pricing and are generally unable to extract economic profit higher than the industry average. The level of concentration has remained stable over the past five years due to limited merger activity and the limited ability for firms to expand significantly. The industry’s major players are RCR Tomlinson, Ahrens Group and AGL Energy. For more information, visit IBISWorld’s Boiler and Tank Manufacturing report in Australia industry page.

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IBISWorld industry Report Key Topics

Firms in this industry manufacture metal boiler and tank products, such as steam boilers, pressure tanks, storage tanks, and other metal containers, from heavy gauge metals. These are used by a wide range of downstream industrial, manufacturing and other industries.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.

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.

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Gavin Smith
IBISWorld
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