Industry performance remains subdued due to downward trends in downstream manufacturing industries.
Melbourne, Australia (PRWEB) October 29, 2013
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.
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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