Machinery Maintenance and Heavy Equipment Repair Services in the US Industry Market Research Report from IBISWorld Has Been Updated
New York, NY (PRWEB) January 13, 2014 -- The Machinery Maintenance and Heavy Equipment Repair Services industry is affected when machinery and equipment is idled or left unused. According to IBISWorld Industry Analyst Kerry Coughlin, “A range of industries, from manufacturing and construction to service and energy sectors, outsource maintenance and repair (M&R) work to industry operators.” As weak consumer spending slowed demand for industry products and services during the recession, these sectors reduced their outputs. Consequently, these downstream markets employed machinery and equipment at a lower rate and demanded less M&R work. The industry suffered revenue declines in 2008, followed by steeper reductions in 2009. However, demand for M&R is currently recovering along with the overall economy. Over the five years to 2013, industry revenue fell at an annualized rate of 1.7% to $27.0 billion, which includes 10.6% revenue growth in 2013.
Since industry operators repair used machinery and equipment, success is dependent on both past investment in fixed capital and current activity in downstream industries. As such, a lag exists between spikes in private investment in industrial equipment and machinery, and when the industry actually benefits from this growth. During this period, machines age beyond their warranties (after which owners outsource more M&R work), and after considerable use, are subject to disrepair. Given that the industry's downstream manufacturing and construction sectors are still operating below 2008 levels, a fair amount of machinery and equipment remains underused. Consequently, the upsurge in private investment in industrial equipment and machinery from 2010 to 2013, with double-digit growth each year, has yet to yield major returns for industry companies.
In the five years to 2018, market conditions will be much more favorable for industry operators. “Despite the current period's decline, operators will benefit from private investment in industrial equipment and machinery,” says Coughlin. Machinery requires consistent repairs as the equipment ages. However, such investments will decelerate considerably in the five years to 2018, meaning that broken machines are more likely to be repaired than replaced. In addition, all of the industry's downstream sectors are forecast to accelerate their use of machines and equipment, as the manufacturing, construction, energy and agriculture sectors strive to meet increased demand. As a result, industry revenue is forecast to grow through 2018.
For more information, visit IBISWorld’s Machinery Maintenance and Heavy Equipment Repair Services in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
Operators in the Machinery Maintenance and Heavy Equipment Repair Services industry offer a range of maintenance and repair (M&R) services for commercial, industrial, agricultural and other sectors that use heavy machinery and equipment. Services include motor repair, welding, blade sharpening, forklift repair and commercial refrigeration repair. General automotive (IBISWorld report 81111) and electronic repairs (IBISWorld report 81121) are excluded from this industry, but welding automobiles and resales of new and used parts and equipment are included.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized 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 US 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]
Share this article