Industry Analysis & Industry Trends
The Electric Submersible Pump Manufacturing industry benefits from near-constant demand for oil and gas, and experienced steady growth in the past five years. However, revenue is expected to briefly decline in 2015 due to low oil prices. The global price of oil has lost nearly half its value since late 2014 due to oversupply, leading drilling firms to curtail production and, in turn, reduce their demand for industry products. Nevertheless, oil prices are expected to rebound in the five years to 2020, and the industry will consequently resume its growth over the period. The largest four companies will continue to control a majority of the market, reaping high profits and investing in ongoing technological innovation.... purchase to read more
Industry Report - Starting a New Business Chapter
There are moderate barriers to entering this industry. The cost of establishing manufacturing facilities and sourcing skilled employees may deter some firms. Pump manufacturing is an industrial endeavor that requires a large factory space and the use of industrial machinery, automated systems and vast energy resources in addition to skilled and semi-skilled human resources. The capital required to penetrate foreign markets may also be prohibitively high for all but the most capital-rich entrants.
In addition, there are barriers to success, including high levels of competition and market share concentration. The existing major players are well established in the market and enjoy cost advantages and customer loyalty... purchase to read more