Industry Analysis & Industry Trends
The Boiler and Heat Exchanger Manufacturing industry is anticipated to grow in a volatile fashion over the five years to 2016 due to mixed performance in downstream markets. In addition, globally determined price levels of key inputs, such as steel, are volatile and influence the selling price of boilers and heat exchangers. In the coming years, increased manufacturing, extraction and commercial operations are anticipated to boost demand for boilers and heat exchangers. However, ongoing import penetration will limit the degree to which domestic demand benefits industry operators... purchase to read more
Industry Report - Industry Investment Chapter
The Boiler and Heat Exchanger Manufacturing industry operates with a low level of capital intensity. IBISWorld estimates that for every $1.00 spent on wages, the industry will allocate $0.09 in capital investment in 2016. While the cost of new plants and equipment is large, and product innovation necessitates regular investment in new technology, skilled labor represents a much larger cost to the industry in general, keeping capital intensity low.
Still, capital intensity varies across firms and is dependent on a firm's size and the sophistication of its technology. A firm's capital intensity is also influenced by the markets it serves. Certain markets are more resource intensive because the projects require more engineering and manufacturing support... purchase to read more