Melbourne, Australia (PRWEB) August 07, 2013
In the five years through 2013-14, the Overhead Crane Manufacturing industry has struggled with inconsistent demand for cranes and related services across major markets. Overall industry revenue is estimated to decline at a compound annual rate of 0.8%. Over 2013-14, industry revenue is expected to fall 1.5% to $436.7 million.
According to IBISWorld industry analyst Caroline Finch, “Downstream demand for industry services is heavily skewed towards capital-intensive manufacturing industries. Many of these, such as paper, metal and car manufactures, have been in structural decline over the past decade.” The industry also provides equipment to manufacturers that depend on construction activity. In the past five years, construction industries have performed weakly, to the detriment of the manufacturing industries that supply them with parts. The industry has benefited from the spillover effects of the boom in mining capital investment, both directly and indirectly.
In the past five years, the industry has shown signs of entering a consolidation phase. This is forecast to pick up pace over the next five years. Industry employment levels have been stable, as remaining enterprises expand the scope of their operations. The industry provides a highly customised product, and high-quality employees are critical. “Despite revenue declines over the past five years, the average wage in the industry has increased,” says Finch. “Operators have sought to match increased demand for industry skills from other industries, notably mining.”
The Overhead Crane Manufacturing industry has focused on services such as repair, maintenance and updates as demand for new cranes has slowed in major markets. This trend is expected to continue over the next five years, with the outlook for major markets uncertain. Manufacturers are expected to benefit from a weakening dollar, while demand from the Mining division is expected to contract. The outlook for construction is uncertain, with unmet demand and red tape a feature of many markets. In the next five years, the industry is expected to perform more strongly, returning to growth.
For more information, visit IBISWorld’s Overhead Crane Manufacturing report in Australia industry page.
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IBISWorld Industry Report Key Topics
This industry manufactures overhead cranes and gantry cranes. Overhead cranes include a hook-and-line mechanism that runs along a horizontal beam, which runs along two widely separated rails.
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.
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