Steel cut: Despite setbacks, industry revenue will rebound as the price of crude oil increases

Volatility in commodity prices, especially oil, has negatively affected the Mining, Oil and Gas Machinery Manufacturing Industry in Texas over the five years to 2017. Consequently, over the five years to 2017, industry revenue in Texas has fallen substantially. Fortunately for industry operators in Texas, however, oil prices have begun to reverse their downward trend. As a result, industry revenue in the state is expected to rise in 2017. The industry in Texas has largely followed the same trends as the industry at the national level because the state represents a disproportionately large percentage of national revenue. Over the five years to 2022, industry revenue in Texas is expected to rebound at least partially from this downturn, but it is not forecast to reach pre-2013 levels...purchase to read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 12-17
-17.7%
Forecast Growth 17-22
x.x%lock
Profit
x.x%lock
Employment
21,408
Businesses
282
Market Share of Companies

Industry Threats & Opportunities

  • Despite strong demand for industry products at the outset of the period, volatility in commodity prices negatively affected revenue
  • The wave of consolidation in the industry has also affected employment in Texas
  • Revenue will remain dependent on the price of crude oil and US oil and gas production

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    Industry Report - Industry Investment Chapter

    The Mining, Oil and Gas Machinery Manufacturing industry in Texas displays a moderate level of capital intensity. According to IBISWorld estimates, the average industry operator spends $0.18 on capital investment for every $1.00 spent on labor, which is higher than at the national level. Industry operators make significant investments in research and development or purchasing licensing rights from companies with appropriate patents to produce machinery that meets the needs of mining companies and oil and gas companies. Researching and developing complex machinery, such as wellbore equipment, gas compressors and performance monitoring instruments, typically requires large capital expenditures. Ove...purchase to read more.

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

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Mining, Oil & Gas Machinery Manufacturing in Texas 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 World price of crude oil and US oil and gas production index in the Mining, Oil & Gas Machinery Manufacturing in Texas industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Mining, Oil & Gas Machinery Manufacturing in Texas 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
  • Rotary oil and gas field-drilling
  • Oil and gas field-production
  • Mining 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

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • World price of crude oil
  • US oil and gas production index
  • Number of businesses in Texas
  • Value of private nonresidential construction in Texas
  • World price of steel

    • Current Performance
  • Oil and gas equipment drives sales
  • Consolidation increases
  • Workforce reductions
  • Industry profit
  • Chart: Revenue Growth

    • Industry Outlook
  • Rebounding oil and gas prices
  • Industry growth
  • Rising profit margins
  • Table: Mining, Oil & Gas Machinery Manufacturing in Texas Industry Revenue Outlook

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

    • Products & Markets

    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
  • Other
  • Oil and gas field-production
  • Mining machinery
  • Chart: Mining, Oil & Gas Machinery Manufacturing in Texas Industry Products and Services Segmentation

    • Major Markets
  • Oil and gas field operators
  • Exports
  • Mining and mineral processors and contractors
  • Chart: Major Market Segmentation for the Mining, Oil & Gas Machinery Manufacturing in Texas Industry

    • Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Mining, Oil & Gas Machinery Manufacturing in Texas

    • Basis of Competition
  • Internal competition
  • External competition

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Mining, Oil & Gas Machinery Manufacturing in Texas Industry

    • Major Companies

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

    • Operating Conditions

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

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

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Mining, Oil & Gas Machinery Manufacturing in Texas Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • World Price of Crude Oil (2008-2022)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Drilling Rig
  • A machine used for oil and natural gas exploration and extraction that drills holes or shafts into the ground.
    • Hydraulic Fracturing
  • A method of extraction that uses a high-pressure mixture of water, sand and chemicals to stimulate the flow of oil and gas and facilitate collection. Hydraulic fracturing is also known as fracking.
    • Manufacturing Cell
  • An area in a manufacturing facility where an individual employee monitors and operates several machines at a time to produce similar goods and increase operating efficiency.
    • Shale Gas
  • A type of natural gas that is extracted from sedimentary rock.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s industry research report on Mining, Oil & Gas Machinery Manufacturing in Texas 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 in Texas:
    • 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 in Texas 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 in Texas, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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