Oil slick: Revenue will rebound modestly, following years of volatile commodity prices and reduced demand

Over the five years to 2017, downstream volatility has rocked the Mining, Oil and Gas Machinery Manufacturing industry. Booming global energy demand promoted strong growth early in the period, but falling oil prices and the appreciation of the US dollar caused heavy declines in revenue over 2015 and 2016. This decline in overall commodity prices led to a drop in capital expenditure for new exploration and production projects, constraining downstream demand for industry products and causing revenue to fall over the past five years. Over the next five years, however, the industry is expected to rebound modestly from this downturn, as a recovery in commodity prices is anticipated to encourage downstream investment in productive capacity...purchase to read more.

Industry Statistics & Market Size
Revenue
$13bn
Annual Growth 12-17
-17.9%
Forecast Growth 17-22
Profit
Employment
45,171
Businesses
855

Industry Threats & Opportunities

  • Positive commodity pricing trends over the latter half of the next five years are expected to support demand
  • Consolidation will also lead to large operators offering integrated services
  • Industry operators will continue to experience challenging conditions over the next five years
  • Industry Report - Industry Locations Chapter

    Industry operators tend to locate close to historical centers of mining, oil or gas production activity. Consequently, about half of all industry establishments are concentrated in the Southwest region, particularly Texas. Many major companies have headquarters or corporate offices in Houston, which is known for being a hub of oil and gas operations on land and in the Gulf of Mexico. Texas has a particularly high level of activity in the oil and gas industries and accounts for an estimated 39.7% of industry establishments, the largest share of any state. Oklahoma follows with 9.4% of total industry establishments. The Southeast also exhibits a significant share of locations (21.2%) due to drilling activity in the Gulf of Mexico and vast deposits of ore in the Appalachian areas. Lou...purchase to read more.

    Additional Insights for the Mining, Oil & Gas Machinery Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Mining, Oil & Gas Machinery Manufacturing Industry are

  • Access to the latest and most-efficient technologies
  • Effective performance monitoring
  • Concentration on core business
  • IBISWorld analysts also discuss how external factors such as US oil and gas production index and World price of crude oil in the Mining, Oil & Gas Machinery Manufacturing industry impact industry performance..

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    What's in this report

    What is the Mining, Oil & Gas Machinery Manufacturing Industry?

    Companies in this industry manufacture oil and gas field equipment and underground mining machinery. Products include rotary and portable drilling rigs and parts; crushing, pulverizing, screening and mineral processing machinery; and derricks, substructures and related accessories. Parts are included, but support services are excluded.

    Industry Products
  • Mining machinery
  • Rotary oil and gas field drilling machinery and equipment
  • Oil and gas field production machinery and equipment excluding pumps
  • All other including portable drilling rigs, well surveying machinery
  • Industry Activities
  • Manufacturing oil and gas field machinery and equipment
  • Manufacturing rotary oil and gas field drilling machinery and equipment
  • Manufacturing other oil and gas field drilling machinery and equipment
  • Manufacturing portable drilling rigs and parts
  • Manufacturing underground mining machinery and equipment
  • Manufacturing crushing, pulverizing and screening machinery and equipment
  • Manufacturing drills and other mining machinery
  • Manufacturing mineral processing machinery
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • US oil and gas production index
  • World price of crude oil
  • Demand from mining (except oil and gas)
  • Trade-weighted index
  • World price of steel

  • Current Performance
  • Oil and gas equipment drive sales
  • Consolidation to continue
  • The importance of trade
  • Industry profit and size
  • Chart: Revenue Growth

  • Industry Outlook
  • Depressed oil cycle set to rebound
  • Profitability and landscape
  • Table: Mining, Oil & Gas Machinery Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Mining, Oil & Gas Machinery Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Oil Drilling & Gas Extraction
  • Construction & Mining Equipment Wholesaling
  • Heavy Equipment Rental

  • Key Selling Industries
  • Engine & Turbine Manufacturing
  • Ferrous Metal Foundry Products
  • Metal Stamping & Forging
  • Steel Rolling & Drawing

  • Products & Services
  • Rotary oil and gas field drilling machinery and equipment
  • Oil and gas field production machinery and equipment excluding pumps
  • Mining machinery
  • All other including portable drilling rigs, well surveying machinery
  • Chart: Mining, Oil & Gas Machinery Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Oil and gas field producers and contractors
  • Exports
  • Mining and mineral processing industries and contractors
  • Chart: Major Market Segmentation for the Mining, Oil & Gas Machinery Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation, other, marketing, rent and utilities
  • Chart: Cost Structure Benchmarking – Sector vs Mining, Oil & Gas Machinery Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Mining, Oil & Gas Machinery Manufacturing Industry

  • Industry Globalization
    National Oilwell Varco Inc., Caterpillar Inc., Schlumberger Limited, Baker Hughes, a GE company, LLC, Halliburton Company,
  • Table: National Oilwell Varco Inc. - financial performance
  • Table: Caterpillar Inc. - financial performance
  • Table: Schlumberger Limited - financial performance
  • Table: Baker Hughes, a GE company, LLC - financial performance
  • Table: Halliburton Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Mining, Oil & Gas Machinery Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Mining, Oil & Gas Machinery Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Price of Steel (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Drilling Rig
  • A machine that creates holes or shafts in the ground to explore and extract minerals, oil and natural gas.
  • Hydrocarbon
  • An organic compound found mostly in crude oil that, when processed, acts as a significant energy source.
  • Manufacturing Cell
  • An area of a manufacturing plant in which a single employee groups together similar products for isolated assembly, testing and quality control.
  • Shale Gas
  • A natural gas produced from a fine-grained sedimentary rock.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Mining, Oil & Gas Machinery Manufacturing can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Mining, Oil & Gas Machinery Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Mining, Oil & Gas Machinery Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Mining, Oil & Gas Machinery Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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