Source: IBIS World Market Research
Revenue will rebound, but fluctuating commodity prices will continue to pose a threat
- Positive commodity pricing trends are expected to support demand from buyers of mining, oil and gas machinery
- The rising trade-weighted index has made imports less expensive for domestic buyers
- Industry operators will continue to experience challenging conditions over the next five years
Over the five years to 2016, downstream volatility has rocked the Mining, Oil and Gas Machinery Manufacturing industry. Booming global energy demand promoted strong growth early in the period, but falling oil prices and appreciation of the US dollar have caused heavy declines over the past two years. Over the next five years, the industry is expected to rebound from this downturn, as a recovery in commodity prices will encourage downstream investment in productive capacity. Still, the continued appreciation of the dollar will dampen export volumes and present a challenge to the industry.