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THE IMPORTANT STUFF
JULY 2023
The Health of the Australian Hydraulic Market
We are back for another year and as usual, the people in the corporate box (that’s any department higher than ours) are making it tough for the rest of us. My Dad told me when I was a kid, that by the time I got to his age, we’d all have to buy a wheelbarrow to carry our wages home at the end of the week. I reckon he was not far off the mark. What he didn’t say was it was going to take the entire wheelbarrow to buy a loaf of bread!
That said, I think there is a lot to be positive about. Our industry is growing and there is opportunity out there for those who want to put in the hard yards.
Let’s take a look at a couple of facts for the hydraulics industry:
The global hydraulics market is currently worth USD $43.74 billion (AUD $66.27 billion).
The compounding growth expectation of 5.48% will see an increase to USD $63.86 billion (AUD $96.75 billion) by 2030.
For the purpose of the report, the hydraulics industry is split into two sectors, industrial and mobile hydraulics. The prediction is that there will be a significant increase in the mobile hydraulics sector.
Today Australia’s hydraulics share is about USD $3 billion (AUD $4.54 billion) which may not seem like a lot but try counting to one million three thousand times and you’ll find it takes a while to get there.
After all that, if you are struggling to create new opportunities for yourself and your business, you could always buy someone else out! If you have heaps of free cash give me a ring! Don’t tell my team I said that.
Prospects for 2023?
There are many factors that decide whether you are going to have a good year, but in my opinion, the chances of us having a good year are better than average. Here’s my reasons:
- There is a lot of work, in the form of orders, still hanging around from Covid that have not yet commenced.
- There is a conscious effort to bolster Australia’s work force so there is a focus on immigration.
- Domestic housing is in short supply.
- The government is investing heavily on infrastructure.
- Queensland at least will benefit from state spending in preparation for the 2032 Olympics.
- The mines are pouring heaps of money into new projects and improving processing facilities.
- The defence force is ramping up its infrastructure.
All of the above points will create work and I’m thinking there is enough potential to outweigh the negative factors like increasing interest rates and rumours of worldwide recessions. Keep up the good work because you are on a winner.
The Look of your Invoice
You may have noticed an additional product line on your invoice that looks extremely similar to a promo product.
That’s because it is! As a way to help account for the free gift in your order and to help us make sure we don’t miss anybody when we send out all the cool stuff, we’ve added it as a part number.
You’ll also notice it has a zero cost, that’s what happens when it’s free – Just saying!