Melbourne, Australia (PRWEB) February 09, 2015 -- Operators in the Lubricants and Other Petroleum Products Manufacturing industry produce a wide range of vital lubricant, grease, fluid, oil and bituminous products. Industry products are broadly used throughout society in the daily running of vehicles, machinery and equipment, in the construction of roads and in general manufacturing. The industry is expected to generate revenue of $1.7 billion in 2014-15, down 6.9% from the previous year due to a drop in base stock prices. According to IBISWorld industry analyst Alen Allday, “the industry has benefited from export growth in the past five years, partly offsetting continued import growth.” The industry is expected to decline at an annualised rate of 2.2% over the five years through 2014-15.
Exports are forecast to generate 15.8% of industry revenue in 2014-15, while imports, consisting mainly of automotive oil, industrial oil, lubricants, greases, and other petroleum products, are expected to account for 37.0% of domestic demand for the year. Industry employment is expected to decrease over the five years through 2014-15, as higher import levels have reduced manufacturing volumes and companies have cut staff in an attempt to maintain margins. “A decline in enterprise numbers is also expected, as small and unprofitable companies have exited the industry,” says Allday. With continued industry consolidation, this will result in the major players employing the bulk of the workforce. The industry has a medium level of market share concentration. Major players include Australasian Lubricants Manufacturing Company Pty Ltd, Viva Energy Australia Group Ltd, Valvoline (Australia) Pty Ltd, BP Australia Investments Pty Ltd and Fuchs Lubricants (Australasia) Pty Ltd.
Over the five years through 2019-20, automotive oil, industrial oil, and coke production volumes are expected to decrease. Bituminous materials output is expected to rise on the back of higher road construction activity. Automotive oil production is expected to fall as imports increase and downstream demand slows. Coke production and exports are expected to ease due to increased global competition. Input costs are expected to increase as crude oil prices rise and the Australian dollar weakens, despite firms securing productivity gains. Over the next five years, Lubricants and Other Petroleum Products Manufacturing industry profit is expected to remain stable.
For more information, visit IBISWorld’s Lubricants and Other Petroleum Product Manufacturing industry in Australia report page.
The industry produces a range of petroleum and lubricant products manufactured using base stocks consisting of oil, grease and organic compounds. These products include automotive oils, other transport oils, industrial oils, greases and other lubricants. Firms in the industry also manufacture bituminous materials and coal products such as petroleum coke and coal coke.
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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.
Gavin Smith, IBISWorld, http://www.ibisworld.com, +61 396553838, [email protected]
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