Audio Visual Electronic Equipment Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld

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The Audio Visual Electronic Equipment Manufacturing in Australia will struggle through the next five years as import penetration increases. For this reason, industry research firm IBISWorld has updated its report on the Audio Visual Electronic Equipment Manufacturing industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

There is an opportunity for businesses to operate in niche markets where Australian competitive advantage lies.

The Audio Visual Electronic Equipment Manufacturing industry in Australia has endured difficult conditions over the five years through 2012-13. Low-cost producers across Asia, combined with anaemic demand stemming from falling downstream manufacturing levels, have contributed to industry declines. Industry revenue is estimated to decline by an annualised 6.8% over the five years through 2013-14, as producers continue to move production offshore in order to capture greater profit margins through lower wage and capital cost manufacturing. According to IBISWorld industry analyst Alen Allday, “falling consumer and business sentiment, as a result of the financial crisis, also affected key downstream industries and subsequently reduced demand for manufacturing.” Industry revenue is projected to continue falling in 2013-14 by 2.9% to $1.4 billion.

Decreases in revenue have also resulted in declining enterprise and establishment numbers as businesses move operations offshore or leave the industry altogether. The industry is characterised by high barriers to entry, as large capital outlays are required in the form of factories and machinery. “High competition levels have created a difficult operating environment, forcing a moderate proportion of industry operators to close down,” says Allday. Profit margins have also fallen as industry operators contend with both domestic and international competition. The Audio Visual Electronic Equipment Manufacturing industry is characterised by a low level of market share concentration. There are few major companies in the industry, BAE Systems Australia Holdings Limited and Codan Limited among them.

The outlook for the industry remains poor. Although the local manufacturing and wholesaling markets are forecast to decrease at a slower rate, or stabilise, import competition will remain high and push more enterprises out of the industry. Industry terms of trade are expected to decline as imports increase, while exports decrease and international manufacturers capture additional market share. There is an opportunity for businesses to operate in niche markets in markets where Australian competitive advantage lies, in the manufacture of high value added goods. However, the transition into this type of manufacturing remains difficult. Australian niche markets remain small compared with other international economies such as the United States, Germany and Japan. There have been efforts by the Federal Government to increase innovation. However, the effectiveness, specifically to the industry, has been limited. Consequently, the industry is expected to continue to struggle.

For more information, visit IBISWorld’s Audio Visual Electronic Equipment Manufacturing in Australia industry report page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Companies in this industry are predominantly engaged in the manufacturing of audio or visual equipment, components and receiving sets; sound reproducing and recording equipment; radio and television parts, components and receiving sets; earphones and headphones; and, other electronic equipment, parts and components.

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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