Industry Analysis & Industry Trends
This industry manufactures machinery used to make or process plastic and rubber products, including machinery for: blow moulding, calendaring, plastic-compression moulding, extruding, injection moulding, plastic working, rubber working, tire making, tire recapping and tire shredding. The industry is heavily trade oriented, with the majority of industry revenue coming from exports; consequently, the industry is reliant on the health of the global economy, which has rebounded from recessionary lows. Over the next five years, IBISWorld expects the recovery of downstream markets to continue. However, competition from imports is expected to remain high... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the Plastic and Rubber Machinery Manufacturing industry are moderate. The largest barrier relates to cost; for example, the price of a finished good can be in the five to six-figure range, which is representative of the expense and skill required to manufacture extrusion and injection machines. As a result, to get started, an operator must have a substantial amount of capital to buy parts and acquire skilled labour. Further leading to high capital costs, large warehouses are needed to manufacture these machines, which incur high rent expenses.
Another significant barrier to entry relates to brand recognition. Due to the high prices of these products, potential buyers will look to buy a product that is well established... purchase to read more