Industry Analysis & Industry Trends
During the five years to 2014, revenue and profit were volatile for the Sheet Metal, Window and Door Manufacturing industry, due to significant ebbs and flows in input prices and downstream demand. The price of primary inputs such as aluminum and steel fluctuated by double digits, challenging profit margins for industry operators, since they were unable to pass on price increases. The industry however, is poised for solid growth over the five years to 2019, due to increasing demand from downstream industries and stabilizing input prices... purchase to read more
Industry Report - Industry Investment Chapter
The Sheet Metal, Window and Door Manufacturing industry is characterized by a low level of capital intensity. On average, operators spend $0.08 on machinery, equipment and other capital expenses for every dollar spent on wages. The nature of production requires investment in expensive machinery and equipment necessary for maximizing efficiency. While the initial cost of production may be high, the machinery and equipment itself has a long useful life and requires few upgrades, which helps keep depreciation relatively low.
Capital intensity does vary according to the scale of operations. In general, smaller companies tend to be less capital-intensive due to the use of more labor-intensive production methods and a lack of purchasing power... purchase to read more