Industry Analysis & Industry Trends
This industry manufactures ball bearings and roller bearings, which are small machines that constrain motion and reduce friction between moving parts of vehicles and other equipment. The industry depends on demand from a variety of transport and manufacturing markets, with foreign markets generating nearly half of the average operator's revenue. Revenue is also responsive to the price of steel, which is a key input into bearings and influences the price operators charge for their products. In the five years to 2014, moderate demand for bearings and volatile steel prices have induced revenue growth at an estimated 1.8% per year on average. In the five years to 2019, import penetration and increasing competition for key export markets is likely to constrain revenue growth further... purchase to read more
Industry Report - Starting a New Business Chapter
Despite the presence of few explicit barriers to entry, some logistical factors may deter entry. Significant financial investment is required to acquire, maintain and update plants and equipment. Companies that are unable to finance themselves through equity (issuing shares) and that are unable to take on extensive debt would thus be deterred from entering. Companies also need a workforce that is relatively skilled and can operate the machinery and offer effective aftermarket services, though the costs of hiring and training tend to be insignificant.
The procurement of raw material may present another barrier to entry. Generally, incumbents in this industry maintain strong relationships with upstream suppliers to ensure a steady supply of steel and other raw material... purchase to read more