Pump and Compressor Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld

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Strong import growth and mixed conditions for mining, agriculture, utilities and construction have caused a mixed revenue performance for the industry over the past five years. For this reason, industry research firm IBISWorld has updated its report on the Pump and Compressor Manufacturing industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Drier than average climatic conditions in some years and a growing awareness of global warming have placed a greater focus on water management issues

The Pump and Compressor Manufacturing industry has post mixed growth over the past five years, with declines in the early years followed by some growth as demand from key downstream markets and capital expenditure across the economy began to strengthen. Drier than average climatic conditions in some years and a growing awareness of global warming have placed a greater focus on water management issues. This has caused state governments to invest in water supply and treatment infrastructure, which has boosted demand for industry products. According to IBISWorld industry analyst Alen Allday, “industry growth slowed in the wake of the global financial crisis, undermined by a slowdown in mining and non-residential construction activity.” However, this did not last long. The industry returned to growth in 2011-12 as demand from key mining, construction and water treatment markets flowed once again. Strong import growth and mixed conditions for mining, agriculture, utilities and construction have caused a mixed revenue performance in the remaining years through 2014-15. IBISWorld estimates that industry revenue will decrease by 1.8% in 2014-15 due to flat mining levels and lower utility demand. Over the five years through 2014-15, industry revenue is estimated to increase at an annualised 1.1% to $1.4 billion.

Conditions in the industry are forecast to remain moderate over the five years through 2019-20, due to a mixed economy and weaker demand from some key downstream markets. “Ongoing development in the resources and water treatment sectors, as well as an improving outlook for the rural economy, should stimulate demand for pumps and compressors,” says Allday. This will offset slower growth in the mining sectors. Imports are forecast to rise over the next five years, as global players shift manufacturing operations to low-cost Asian countries. Domestic pump and compressor manufacturers are expected to increase export volumes and sales in the Asia-Pacific region, resulting in steady export growth. Local firms are also expected to increasingly focus on developing high-value products targeted at water treatment, mining and niche markets.

The Pump and Compressor Manufacturing industry has a medium industry concentration level. The industry is dominated by one large firm, Weir Group, and is also comprised of several medium-sized firms, and a large number of small companies. Concentration within the industry has increased in recent years, following the acquisition of several smaller players by international companies and the relocation of some manufacturing operations to low-cost Asian markets. This trend is expected to continue in future as pump and compressor manufacturing companies look to increase economies of scale and market share levels through acquisitions and organic growth.

For more information, visit IBISWorld’s Pump and Compressor Manufacturing industry in Australia report page.

Firms in the industry mainly manufacture pumps and pumping systems. Generally, a pump is a device used to move fluids - including liquids, gases and slurries - by physical or mechanical action. Firms in the industry also manufacture air and gas compressors, with the exception of those used in air conditioning and refrigeration.

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IBISWorld industry Report Key Topics

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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