Industry Analysis & Industry Trends
The Metal Pipe and Tube Manufacturing industry's performance is highly correlated with the world price of steel and cyclical demand from key markets such as the energy sector and industrial manufacturing. After contracting to almost half its previous level, revenue surged over the five years to 2015. As the industry's primary input, steel prices have a significant impact on the performance of industry operators. Steel prices have fluctuated wildly during the past five years. Difficult operating conditions that have hampered industry sales during the past two years are expected to continue hindering performance during the first half of the next five-year period... purchase to read more
Industry Report - Industry Investment Chapter
The Metal Pipe and Tube Manufacturing industry operates with a medium level of capital intensity, with operators relying on large-scale capital equipment for their most pipe and tubing manufacturing processes. IBISWorld estimates that for every $1.00 spent on wages, industry operators will spend $0.20 in capital investment. Capital spending is typically related to the purchase of metalworking and forming machinery, while a much smaller portion is allocated toward buildings, new facilities and other structures.
In addition, the purchase of computers and data processing equipment has been on the rise over the past five years. These purchases allow integrated producers to better manage sizeable inventories and orders... purchase to read more