Fenced in: Strong import competition and weak domestic demand have eroded industry revenue

Operators in the Spring and Wire Product Manufacturing industry have faced difficult trading conditions over the past five years. Declining domestic demand and surging import penetration have driven a decline in industry revenue over the period. Industry revenue is expected to decline at an annualised 4.7% over the five years through 2018-19, to $1.1 billion. This trend includes an anticipated decline of 3.8% in the current year.Deteriorating demand conditions across many of the industry's key downstream markets has contributed to the fall in industry revenue over the past five years...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 14-19
-4.7%
Forecast Growth 19-24
Profit
Employment
2,929
Businesses
337
Market Share of Companies

Industry Threats & Opportunities

  • Import penetration has reduced the industry’s market share and eroded revenue
  • Increasing import penetration has led several manufacturers to exit the industry
  • Industry profitability is forecast to decline further over the next five years
  • Industry Report - Industry Investment Chapter

    The Spring and Wire Product Manufacturing industry is moderately capital-intensive. For every dollar spent on capital investment in the current year, industry operators will spend an estimated $7.59 on labour. Capital intensity varies significantly between the industry's larger and smaller operators. The larger operators have made substantial investments in automation technologies in attempt to boost operating efficiencies. However, this investment has been unaffordable for smaller operators, which remain heavily reliant on manual labour. The exit of unprofitable small-scale operators over the past five years has increased the industry's capital intensity...purchase to read more.

    Additional Insights for the Spring and Wire Product Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Spring and Wire Product Manufacturing are:

  • Having a wide and expanding product range
  • Upstream vertical integration (ownership links)
  • Having links with suppliers
  • IBISWorld analysts also discuss how external factors such as Demand from construction and Demand from mining in the Spring and Wire Product Manufacturing industry impact industry performance..

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    What's in this report

    What is the Spring and Wire Product Manufacturing Industry?

    Industry firms primarily manufacture wire or wire products, cable, wire netting, nails and rolled steel fence posts.

    Industry Products
  • Wire fencing products
  • Nails and other fasteners
  • Springs
  • Other fabricated wire products
  • Industry Activities
  • Wire product
  • Spring
  • Welded link chain and other chain (except forged, cast or sprocket chain)
  • Rolled steel fence post
  • Nail and skewer
  • Safety pin
  • Wire screen, netting and mesh (excluding reinforcing mesh)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from construction
  • Demand from mining
  • Demand from agriculture
  • Domestic price of iron and steel
  • Demand from furniture manufacturing

  • Current Performance
  • Profit and participation
  • International trade
  • Construction trends
  • Mining trends
  • Agriculture trends
  • Automotive trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit and participation
  • Construction trends
  • Mining trends
  • Agriculture trends
  • Manufacturing trends
  • Table: Spring and Wire Product Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Spring and Wire Product Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry and Fishing
  • Mining
  • Motor Vehicle Manufacturing
  • Wooden Furniture and Upholstered Seat Manufacturing
  • Mattress Manufacturing
  • Construction

  • Key Selling Industries
  • Iron Smelting and Steel Manufacturing

  • Products & Services
  • Wire fencing products
  • Other fabricated wire products
  • Nails and other fasteners
  • Springs
  • Chart: Spring and Wire Product Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Agriculture sector
  • Construction sector
  • Mining sector
  • Manufacturing sector
  • Other markets
  • Chart: Major Market Segmentation for the Spring and Wire Product Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Spring and Wire Product Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Spring and Wire Product Manufacturing Industry

  • Industry Globalization
    Infrabuild Trading Pty Ltd,
  • Table: Infrabuild Trading Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Spring and Wire Product Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Spring and Wire Product Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Compression Spring
  • A type of coiled spring with space between the successive coils. When force is applied to shorten the spring, the coils are pushed closer together.
  • Leaf Spring
  • A type of spring system commonly used for vehicle suspension that dates back to medieval times. These systems typically involve multi-layered arcs attached to an axle.
  • Torsion Bars
  • A type of coiled spring designed to resist the applied force. When force is applied, the spring twists the coil into a tighter spiral (e.g. the spring found in a clipboard).
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Spring and Wire Product Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Spring and Wire Product Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Spring and Wire Product Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Spring and Wire Product Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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