Hollow performance: Declining steel prices have lowered revenue over the past five years

The Steel Tube, Pipe and Related Fitting Manufacturing industry has been affected by heavy volatility over the past five years. Industry revenue tumbled just prior to the beginning of the period as demand for steel piping used in oil and gas production consistently declined. British oil and gas stocks are on the decline, leaving only difficult-to-access reserves untapped. Even if exploration is successful, falling oil prices have offered little incentive for production. These factors are anticipated to have reduced demand for industry products over the past five years.In recent years, shifting downstream demand has led to volatility in the industry. Vehicle manufacturers rapidly returned to growth following the downturn and construction projects gradually rebounded...read more.

Industry Statistics & Market Size
Revenue
£1.8bn
Annual Growth 14-19
-2.9%
Forecast Growth 19-24
Profit
Employment
8,977
Businesses
338
Market Share of Companies

Industry Threats & Opportunities

  • Low steel prices following consecutive years of sharp decline have limited industry revenue
  • Projected increases in oil and steel prices in the current year are expected to limit revenue decline
  • If fracking becomes widespread, investment in oil and gas production would be expected to boost revenue
  • Industry Report - Starting a New Business Chapter

    Barriers to enter the Steel Tube, Pipe and Related Fitting Manufacturing industry vary significantly depending on sector. Large-scale producers impose substantial barriers at the higher-earning end of the spectrum but small operators that specialise on a certain sector – especially in construction – face much lower barriers. This is reflected by the relatively high number of small firms operating in the industry; according to figures released by the Office for National Statistics, just over 68% of the companies operating in the industry employ fewer than 10 people. However, small operators do not benefit from economies of scale and generally have slim profit margins, decreasing the appeal of entering the industry...purchase to read more.

    Additional Insights for the Steel Tube, Pipe & Related Fitting Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Steel Tube, Pipe & Related Fitting Manufacturing Industry are

  • Ability to pass on cost increases
  • Access to the latest available and most efficient technology and techniques
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Demand from crude petroleum and natural gas extraction and World price of steel in the Steel Tube, Pipe & Related Fitting Manufacturing industry impact industry performance..

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    What's in this report

    What is the Steel Tube, Pipe & Related Fitting Manufacturing Industry?

    Firms in this industry manufacture pipes and tubes from steel.

    Industry Products
  • Oil country tubular goods
  • Structural steel tubes and construction-grade piping
  • Mechanical pipes and structural tubing
  • Industry Activities
  • Producing steel pipe and tube fittings
  • Producing steel pipes and tubes
  • Producing sleeves made of steel
  • Producing casings made of steel
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from crude petroleum and natural gas extraction
  • World price of steel
  • Total value of construction
  • Demand from motor vehicle manufacturing

  • Current Performance
  • US steel tariffs
  • Reduced reserves
  • Shaky foundations
  • Driving upwards
  • Major inputs
  • The effects of technology
  • Chart: Revenue Growth

  • Industry Outlook
  • Fracking falters
  • Green support
  • Stainless steel
  • Table: Steel Tube, Pipe & Related Fitting Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Steel Tube, Pipe & Related Fitting Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Crude Petroleum & Natural Gas Extraction
  • Motor Vehicle Manufacturing
  • Water Main, Sewer System & Related Project Construction
  • Electricity & Telecommunications Infrastructure Construction

  • Key Selling Industries
  • Electricity Supply
  • Iron & Steel Manufacturing

  • Products & Services
  • Structural steel tubes and construction-grade piping
  • Oil country tubular goods
  • Mechanical pipes and structural tubing
  • Other
  • Chart: Steel Tube, Pipe & Related Fitting Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Construction sector
  • Oil and gas sector
  • Vehicle and machinery manufacturers
  • Other
  • Chart: Major Market Segmentation for the Steel Tube, Pipe & Related Fitting Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Steel Tube, Pipe & Related Fitting Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Steel Tube, Pipe & Related Fitting Manufacturing Industry

  • Industry Globalization
    Tata Steel UK Limited,
  • Table: Tata Steel UK Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Steel Tube, Pipe & Related Fitting Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Steel Tube, Pipe & Related Fitting Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Aspiration System
  • Fire detection technology consisting of a pipe network that draws air from a series of locations to a central point.
  • Hydraulic Fracturing (Fracking)
  • An oil and gas extraction technique that involves the pumping of pressurised liquid into rock formations to release the precious commodities.
  • Oil Country Tubular Goods (Octg)
  • A family of pipes and tubes used to extract and transport oil and gas.
  • Precision Tubes
  • Seamless or welded steel tubes used in mechanical engineering and the automobile industry.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Steel Tube, Pipe & Related Fitting Manufacturing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Steel Tube, Pipe & Related Fitting Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Steel Tube, Pipe & Related Fitting Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Steel Tube, Pipe & Related Fitting Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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