Industry Analysis & Industry Trends
The industry has been affected by anaemic activity in downstream manufacturing industries due to the recessive economic climate. Despite being a historically counter-cyclical industry, falling business confidence and investment significantly reduced demand for repair and maintenance, as manufacturers put off non-essential spending. While the economy emerged from recession during 2009-10, as near zero interest rates and stimulus spending provided a brief boost, high unemployment and consumer deleveraging continued to weigh on growth.
Construction markets waned, while investment in the mining and oil and gas sectors fell sharply. Consequently, nearly all of the industry's key drivers recorded poor performances, leading to declines in revenue... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the industry are moderate. Repair of most products in the industry, such as manufacturing, construction and mining, oil and gas machinery is highly specialised. Industry operators require specialised skills and knowledge. As technicians in this industry are required to work on a large range of machines and models, they need a broader set of expertise than those employed specifically by companies to maintain or repair one type of equipment.
Maintenance contracts can be difficult to win, as clients generally prefer to work with service suppliers they have known for long periods. To break into the industry generally requires a pre-existing reputation from earlier work (for example, as an employee of a manufacturer)... purchase to read more