The industry has benefited from healthy export levels, which are largely the result of the improving financial conditions
New York, NY (PRWEB) April 28, 2015
The Power Tools and Other General Purpose Machinery Manufacturing industry manufactures myriad miscellaneous general-purpose machinery; industry products include, but are not limited to, power-driven hand tools, welding and soldering equipment, industrial-process furnaces and ovens, fluid-power cylinders and actuators, fluid-power pumps and motors, scales and balances and packaging machinery. According to IBISWorld Industry Analyst Lucas Isakowitz, “In the five years to 2015, strong demand from manufacturing and construction industries and rising export levels have driven industry growth.” Consequently, revenue for the industry is anticipated to increase moderately in the five years to 2015.
Exports comprise the largest market for industry products. Since 2010, the industry has benefited from healthy export levels, which are largely the result of the improving financial conditions for downstream markets in the United States. In the five years to 2015, exports are expected to rise somewhat. Although high import levels have constrained industry expansion in the past five years, increasing export levels and steady demand from domestic markets is expected to cause industry revenue to increase marginally in 2015.
The Power Tools and Other General Purpose Machinery Manufacturing industry has low market share concentration, with the top four companies in the industry accounting for a small percentage of industry revenue. Because the industry's revenue is spread across a large number of diverse products, no company controls more than 5.0% of the market. For example, robotic assembly machines, packaging machines, welding equipment and industrial filters are all industry products, however no one industry company produces all of these items. The vast majority of all establishments are estimated to employ fewer than 20 people, indicating a highly fragmented industry. Many industry firms focus on one or two specialized products, reinforcing the industry's low market share. “Due to the nature of industry products, its market share concentration has remained relatively unchanged in the past five years,” said Isakowitz.
The industry is anticipated to continue growing, albeit at a slightly slower rate, over the next five years, as the economy continues to improve and demand from key downstream sectors remains strong. Although industrial activity is expected to slow and import penetration will remain high, demand from construction and increasing exports will drive industry growth. As a result, industry revenue is expected to increase marginally in the five years to 2020.
For more information, visit IBISWorld’s Power Tools & Other General Purpose Machinery Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures a wide range of general purpose machinery and related products, including power-driven hand tools; welding and soldering equipment; packaging machinery; industrial-process furnaces and ovens; fluid-power cylinders and actuators; fluid-power pumps and motors; scales and balances; and a myriad of other miscellaneous general-purpose machinery.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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