Atlas Copco Competition
Now Viewing Atlas Copco's competition in: Industrial Machinery Wholesalers
Recent Developments
Equipment Rental Rates Decline - An April 2008 survey by USB Investment Research of its branch managers indicated a continued deterioration of business conditions, including in the equipment rental sector. Specifically, aerials and earthmoving, trench safety, and material handling equipment all suffered pricing weakness. Purchases by equipment rental companies are a strong indicator of industrial machinery wholesale demand.
Manufacturing Indicators Mixed - The Institute for Supply Management (ISM) reports that its manufacturing index for May 2008 increased over the previous month. Exports were a chief driver of the gain, as a weak US dollar made US-manufactured goods more attractive. However, reduced consumer spending is likely to offset any manufacturing gains by increased exports. While the May 2008 manufacturing index improved, US manufacturers' costs rose.
Machinery Shipments, Orders Improve - US shipments and orders for new machinery, indicators for industrial machinery wholesale demand, increased in April 2008 compared to April 2007. Machinery shipments increased 6.6 percent; new orders for machinery grew 11 percent. Despite high prices for fuel and steel, producer prices for machinery and equipment in April increased just over 1 percent.
Competitive Landscape
Demand depends heavily on US manufacturing activity. Profitability depends on product selection and efficient operations. Large companies have economies of scale in advertising and sales programs. Small companies can compete effectively by specializing in particular industries, end-use applications, or geographical areas, and by offering special services. The industry is highly automated: average annual sales per employee is $350,000.
Industrial Machinery Wholesalers Industry Forecast
from Hoover's/D&B subsidiary First Research
Domestic demand for US agriculture, construction, mining, oilfield, and metalworking machinery, and for special, general, service, and miscellaneous industry machinery, is forecast to grow at an annual compounded rate of 4.7 percent between 2007 and 2012.
Machinery Demand Growth Improves
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Low dollar spurs export demand
- Large companies have purchasing economies
- Risk: Slowing economy cuts domestic demand
Industries Where Atlas Copco Competes
- Industrial Manufacturing
- Construction, Mining & Other Heavy Equipment Manufacturing (primary)
- Industrial Machinery & Equipment Manufacturing
