Industry Analysis & Industry Trends
The Bearing and Gear Manufacturing industry make ball bearings, gearboxes and a variety of related parts. These products are generally sold to machinery and equipment manufacturers. The past five years have not been easy on manufacturers as the global financial crisis wreaked havoc on production. To make matters worse, the industry was already struggling against import competition. Overall, industry revenue is estimated to decrease 1.2% annually over the five years through 2011-12 to reach £1.24 billion.
Exports generate a large portion of revenue. The industry's reliance on exports to Europe proved detrimental in 2008-09 and 2009-10, as Europe particularly suffered through the global financial crisis, which led to a fall in export demand... purchase to read more
Industry Report - Starting a New Business Chapter
There are two major barriers to entry in this industry, namely branding and high setup costs. Branding is a key success factor and a pre-requisite for obtaining contracts with downstream markets (e.g. mining machinery manufacturers). A new player would find it difficult to find a significant amount of new clients due to being an unknown company. Most incumbents have an established brand name and customer base, which implies that any new entrant would need to invest into developing their brand image in order to gain market share. This hurdle may deter new firms from entering the industry.
New entrants will also face high setup costs in terms of machinery and equipment for the manufacturing process... purchase to read more