Growth is likely to be driven by stronger demand for metal fasteners in the downstream housing and commercial building markets.
Melbourne, Australia (PRWEB) December 01, 2013
The Nut, Bolt, Screw and Rivet Manufacturing industry in Australia is facing subdued domestic demand conditions and increasing pressure from imports originating from low-cost manufacturing countries in the Asia-Pacific region. According to IBISWorld industry analyst Anthony Kelly, “the industry attempts to compete against imports on the basis of quality and technology, but many local operators struggle to match the operational costs of importers.” Import penetration currently captures about 43.7% of domestic demand.
Much of this industry's revenue is derived from downstream markets that are mature or declining, such as the automotive manufacturing and industrial machinery manufacturing sectors. The poor performance of these downstream markets has resulted in deteriorating domestic demand, and a subsequent contraction in industry revenue. “The industry derived some stimulus from the shipbuilding, aircraft manufacturing and infrastructure markets during the past five years, which helped constrain the pace of industry decline,” says Kelly. The industry exhibits a moderate level of market share concentration, and the major players are Bremick Pty Ltd, ACME Operations Pty Ltd and Noza Holdings Pty Ltd.
Industry revenue is projected to decline by an annualised 2.6% over the five years through 2013-14 to total $665.0 million, despite a modest improvement during the current year (0.8%) associated with the upswing in demand from the building market. The industry's outlook appears marginally better. Growth is likely to be driven by stronger demand for metal fasteners in the downstream housing and commercial building markets, although the industry will continue to be exposed to low-cost import competition and deteriorating demand from several key manufacturing markets. In an attempt to compete with international operators, the Nut, Bolt, Screw and Rivet Manufacturing industry has undergone a significant consolidation process in the hope of reducing unit costs. The number of businesses contesting the industry has fallen by an annualised 2.3% over the five years through 2013-14 to 190 establishments employing 2,050 people. The industry labour force will also be cut as automation is increasingly taken up.
For more information, visit IBISWorld’s Nut, Bolt, Screw and Rivet Manufacturing report in Australia industry page.
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IBISWorld industry Report Key Topics
The Nut, Bolt, Screw and Rivet Manufacturing industry consists of firms that manufacture metal nuts, bolts, screws, rivets or similar fasteners or metal washers.
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
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.