Industry Analysis & Industry Trends
The industry is heavily influenced by trends in industrial production activity, construction activity and the performance of the oil and gas sector, as they are key downstream markets. Imports and exports also have a major influence on performance. However, both imports and exports are inflated by re-exports.
The industry rebounded after declining during the first year of the period. Commercial construction activity fell sharply at the start of the period which negatively affected industry revenue, however it increased again over the following years and stimulated demand for compressors. Although industrial production activity was slow and hindered demand for compressors, demand for parts increased as firms opted to repair compressors instead of replacing them... purchase to read more
Industry Report - Industry Investment Chapter
The capital intensity of an industry is determined by comparing the human and equipment factors of production using wages and depreciation costs as proxies. High depreciation costs indicate a high level of investment in depreciable assets such as buildings and equipment, suggesting high capital intensity. Conversely, high wage costs demonstrate high labour intensity.
The industry has a medium level of capital intensity, with an estimated capital-to-labour ratio of 1:7.31 in 2016-17. This indicates that for every £1 operators spend on capital, they spend £7.3 on labour. The industry is technologically advanced and requires skilled workers for manufacturing and research and development activities. Mea.. purchase to read more