Machine Tool and Parts Manufacturing in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC C2463Revenue
$2.3bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
8,891
Businesses
1,507
Wages
$XXX.Xm
Machine Tool and Parts Manufacturing in Australia industry analysis
The Machine Tool and Parts Manufacturing industry is highly fragmented, primarily comprising smaller scale manufacturers that employ fewer than 20 people and specialise in certain product segments. Manufacturers can gain an advantage over one another and external competition via significant research and development investment. Larger manufacturers, in particular, have greater financial scope to invest in research and development and can afford to take risks with new product developments and modifications The industry primarily services the construction, mining and manufacturing sectors. Subdued demand from construction has limited the industry's profit margins. However, greater expenditure on mining is set to support the industry. Machine tool and parts manufacturing revenue is expected to rise to an estimated $2.3 billion at an annualised 1.2% over the five years through 2023-24. This trend includes an anticipated decline of 2.8% in 2023-24.The Machine Tool and Parts Manufacturing industry demonstrates a high degree of globalisation owing to high rates of both imports and exports. An appreciation in the Australian dollar has benefited international manufacturers that rely on imports for revenue, as their products have been more competitive in the local market. The high competition demonstrated by price and quality competitive importers has strained local manufacturers. In turn, imports have jumped as a share of domestic demand in recent years.Going forwards, machine tool and parts manufacturing revenue is forecast to drop as imports continue to penetrate the industry. The growing volume of imports, as global manufacturers leverage complex supply and manufacturing techniques to deliver highly competitive machine tools and parts, will restrict further expansion in the industry. With the return of foreign investment as pandemic-related economic pressures ease, demand from the construction, mining and manufacturing sectors is set to support the industry's profit margins. Revenue is projected to decline at an annualised 0.3% over the five years through 2028-29, to total $2.2 billion.
Trends and Insights
- Import competition has put pressure on the industry’s profit margins. This will restrict further industry expansion as international competitors can potentially steal domestic manufacturers’ market share.
- Demand for power-operated tools typically relies on the manufacturing and construction sectors. Demand for this product segment has declined because these downstream markets have struggled during the pandemic.
- Machine tool and parts manufacturers are typically located in Victoria, New South Wales and Queensland. Focusing on these regions enables businesses to access local markets and labour forces.
- The industry is extensively fragmented with companies often specialising in producing specific machines and parts because of the vast range of products. This broad spectrum prevents any one company from dominating the industry.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.2 % over the past five years, to reach an estimated $2.3bn in 2023.
Trends and Insights
Intensified import competition poses challenges for domestic manufacturers
- Imports account for 76.9% of domestic demand in 2023-24.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Manufacturers will continue innovating over the coming years
- Larger manufacturers are set to invest in automation to boost operating efficiencies. Growing rates of automation can lead to a reduced industry workforce as certain tasks are automated.
Biggest companies in the Machine Tool and Parts Manufacturing in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Cigweld | 150.0 | |
CPE Capital Pty Ltd | 112.7 | |
ANCA | 90.1 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Power-operated hand tools, Wood and metalworking machinery and Metal dies, die sets and moulds. Power-operated hand tools is the largest segment of the Machine Tool and Parts Manufacturing in Australia.
Trends and Insights
Slowdowns in downstream markets have subsided demand for power-operated hand tools
- Power-operated hand tools include drills, saws and hydro-washers.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Mining and Construction Machinery Manufacturing in Australia
Complementors
- Power Automation Products and Other Electrical Equipment Manufacturing in Australia
- Agricultural Machinery Manufacturing in Australia
- Food Processing Machinery Manufacturing in Australia
International industries
- Woodworking Machinery Manufacturing in the US
- Power Tools & Other General Purpose Machinery Manufacturing in the US
- Personal Protective Equipment Manufacturing in the US
- Power Tool Manufacturing in the US
- Packaging Machinery Manufacturing in the US
Table of Contents
About this industry
Industry definition
Manufacturers primarily produce woodworking or metalworking machinery and equipment, or specialised parts for this equipment. Enterprises that mainly manufacture pneumatic or power-operated hand tools are also included in the industry.
What's included in this industry?
Power-operated hand toolsWood and metalworking machineryMetal dies, die sets and mouldsAccessories for power-operated toolsNon-metalworking machine toolsForging machinesPneumatic hand toolsCompanies
CigweldCPE Capital Pty LtdANCAPurchase this report to view all 3 major companies in this industry.
Related Terms
COMPUTER NUMERIC CONTROLLATHES3D PRINTINGIndustry Code
ANZSIC 2463 - Machine Tool and Parts Manufacturing in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Import competition has put pressure on the industry’s profit margins. This will restrict further industry expansion as international competitors can potentially steal domesti...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Demand for power-operated tools typically relies on the manufacturing and construction sectors. Demand for this product segment has declined because these downstream markets ...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Machine tool and parts manufacturers are typically located in Victoria, New South Wales and Queensland. Focusing on these regions enables businesses to access local markets a...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The industry is extensively fragmented with companies often specialising in producing specific machines and parts because of the vast range of products. This broad spectrum p...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Cigweld is constantly investing in research and development. This enables the company to stay at the forefront of the industry through integrating advanced technologies and i...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Cigweld's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of CPE Capital Pty Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of ANCA's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Cigweld, and factors influencing its performance in the industry
- Description and key data for CPE Capital Pty Ltd, and factors influencing its performance in the industry
- Description and key data for ANCA, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Machine Tools and Parts Manufacturing industry functions under minimal regulation. Regulations are related to occupation health and safety and environmental safety laws
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Manufacturers need to invest in research and development to maintain a competitive edge in the industry, keeping highly qualified employees in demand. This has led to higher ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Machine Tool and Parts Manufacturing industry in Australia in 2024?
The market size of the Machine Tool and Parts Manufacturing industry in Australia is $2.3bn in 2024.
How many businesses are there in the Machine Tool and Parts Manufacturing in Australia industry in 2023?
There are 1,507 businesses in the Machine Tool and Parts Manufacturing industry in Australia, which has grown at a CAGR of 1.1 % between 2018 and 2023.
Has the Machine Tool and Parts Manufacturing industry in Australia grown or declined over the past 5 years?
The market size of the Machine Tool and Parts Manufacturing industry in Australia has been growing at a CAGR of 1.2 % between 2018 and 2023.
What is the forecast growth of the Machine Tool and Parts Manufacturing industry in Australia over the next 5 years?
Over the next five years, the Machine Tool and Parts Manufacturing industry in Australia is expected to decline.
What are the biggest companies in the Machine Tool and Parts Manufacturing market in Australia?
The biggest companies operating in the Machine Tool and Parts Manufacturing market in Australia are Cigweld, CPE Capital Pty Ltd and ANCA
What does the Machine Tool and Parts Manufacturing in Australia include?
Power-operated hand tools and Wood and metalworking machinery are part of the Machine Tool and Parts Manufacturing industry.
Which companies have the highest market share in the Machine Tool and Parts Manufacturing in Australia?
The company holding the most market share in Australia is Cigweld.
How competitive is the Machine Tool and Parts Manufacturing industry in Australia?
The level of competition is high and increasing in the Machine Tool and Parts Manufacturing industry in Australia.
