Industry Analysis & Industry Trends
Industry revenue is expected to increase at a compound annual rate of 7% over the five years through 2016-17. Demand for repair services grew, as many firms in downstream industries remained cautious when spending large sums of money on new machinery, choosing instead to repair existing machinery. However, demand for maintenance services varied between downstream industries. For instance, bleak manufacturing activity and significant reductions in mining activity negatively influenced demand for maintenance services from these types of businesses. Nevertheless, improvements in construction activity increased demand for maintenance services from construction firms by shortening service intervals... purchase to read more
Industry Report - Industry Investment Chapter
An industry's capital intensity is determined by comparing the human and capital equipment factors of production, using wages and depreciation costs as proxies. Comparatively high depreciation costs indicate a high level of investment in depreciable assets such as buildings and equipment, which suggests high capital intensity. Conversely, comparatively high wage costs demonstrate high labour intensity.
The industry displays a low level of capital intensity, with an estimated capital-to-labour ratio of 1:12.23 in 2016-17. This indicates that for every £1.00 spent on capital, £12.23 is spent on labour. Rep.. purchase to read more