Industry Analysis & Industry Trends
The Cutting Tool and Machine Tool Accessory Manufacturing industry experienced adverse effects from the economic downturn. During the recession, negative economic conditions reduced demand for machined parts at tool and die businesses, causing demand for custom work to decline. As the economy improves, downstream demand will continue to rise, spurring marginal revenue growth. Nevertheless, stagnant product innovation will hamper overall growth.... purchase to read more
Industry Report - Industry Investment Chapter
The Cutting Tool and Machine Tool Accessory Manufacturing industry has a low level of capital intensity. IBISWorld estimates that for every $1.00 spent on wages, industry operators will allocate $0.12 toward capital investment. This is a slight increase since 2009, which indicates that industry operators are investing in machinery to improve productivity in their manufacturing facilities. Further indicating this trend, wages as a share of revenue has declined significantly over the five years to 2014 as industry operators have relied on technology to make workers more productive.
Despite the need for expensive machinery to produce industry products, labor is a key input in the manufacturing process... purchase to read more