Industry Analysis & Industry Trends
The industry is characterised by a large number of small players and no identifiable major players. Industrial production activity remained weak during the past five years, which propelled demand for repair services, as firms chose to repair rather than replace their equipment. A fall in defence spending also increased demand for repair services from the military. However, demand for maintenance services from these two markets dwindled, constraining industry revenue, because lacklustre industry production activity and reductions in military operations widened service internals. Demand for repair and maintenance services from electricity producers also fell due to depressed electricity production volumes and the replacement of ageing technology with renewable alternatives... purchase to read more
Industry Report - Industry Investment Chapter
The level of capital intensity is determined by comparing the human and capital equipment factors of production, using wages and depreciation as proxies. Comparatively high depreciation costs indicate high investment in depreciable assets such as buildings and equipment, implying a capital-intensive business model. Conversely, comparatively high wage costs indicate high labour intensity.
The industry displays a low level of capital intensity, with an estimated capital-to-labour ratio of 1:18.07 in 2016-17. This indicates that for every £1 spent on capital, £18.07 will be spent on labour.
The industry is labour intensive because highly skilled personnel are required to carry out different maintenance and repair activities. On .. purchase to read more