The industrial machinery manufacturing industry continues to decline, according to market research by IBISWorld.
According to a release posted on PRWeb, the broad segment of unrelated products – including industrial machinery "including ball or roller bearings" and everything from taxi meters to sewing machines – has three-quarters of its products used by other manufacturers.
The sector has been hampered by low-cost manufacturing moving offshore and cheap imports. IBISWorld predicts that it will contract 2.3 per cent a year for the next five years.
"The gradual removal of tariffs and the emergence of low-cost manufacturing hubs in developing economies have caused the manufacture of textiles, automobiles and other products to head offshore," explained Angela Kidson, an analyst with the firm.
In positive news, certain niche industry manufacturers, such as those making water treatment equipment, had experienced growth. In the future, companies "that are able to concentrate on high-value niche products with efficient operations will perform well."
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