Industry Analysis & Industry Trends
The performance of the Metal Pipe and Tube Manufacturing industry is heavily dependent upon downstream industries, particularly oil drilling and gas extraction companies, which cut purchases of industry products considerably during the recession. Additionally, steel price volatility prevented industry operators from optimizing their prices and output levels. However, crucial sources of demand for the industry will continue to come from oil exploration and production, the manufacturing sector, water and gas reticulation and construction over the five years to 2019. Therefore, increases in downstream demand and sustained growth in automotive component manufacturing, will contribute to moderate revenue growth... purchase to read more
Industry Report - Industry Investment Chapter
The Metal Pipe and Tube Manufacturing industry operates with a medium level of capital intensity as firms rely on large-scale capital equipment for their production operations. IBISWorld estimates that for every $1.00 spent on wages, industry operators will spend $0.18 in capital investment. This 2014 figure represents a substantial increase from $0.12 in 2009. New capital spending is typically related to the purchase of machinery, representing an estimated 92.6% of capital expenditure in 2014, 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, increasing from $9.9 million in 2009 to an estimated $17.8 million in 2014... purchase to read more