Thinking of Buying a Machinery Business in Australia? Here Are 3 Vital Questions to Ask
The Australian heavy machinery repair and maintenance industry generated $22.7 billion in revenue in 2024–25, with profit margins averaging 6.6%. Growth has been supported by surging mining activity and ageing machinery fleets, as companies extend the lifespan of existing equipment rather than purchase new machinery.
The industry employs over 55,000 people across more than 12,000 enterprises. Revenue is projected to grow modestly at 0.4% annually through 2029–30, reaching $23.1 billion. Demand is expected to rebound strongly from construction activity, with the Federal Government’s National Housing Accord committing to build 1.2 million new homes over five years.
1. Is the Business Financially Strong in a Cyclical Market?
Why It Matters
Heavy machinery repair is tied to volatile sectors like mining and construction. High iron and steel prices, for example, have recently inflated repair costs, boosting revenue but straining some operators. Profitability is vulnerable to swings in commodity prices, business confidence, and raw material costs.
What to Check
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Profit margins – Compare against the industry average of 6.6%.
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Revenue base – Assess exposure to cyclical markets like mining and construction versus more stable sectors.
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Cost controls – Review how the business manages fluctuations in steel and parts prices.
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Cash flow – Ensure reliable working capital, given high labour and parts intensity.
2. Does the Market Position Offer Competitive Advantage?
Why It Matters
The market is highly fragmented, with niche providers and trusted dealerships competing side by side. Large players like Seven Group Holdings (WesTrac) and Komatsu dominate key regions, leveraging exclusive dealership rights and brand loyalty. Smaller operators succeed through local reputation, fast turnaround, and proximity to clients.
What to Check
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Customer base – Determine reliance on major mining and construction firms versus diversified smaller clients.
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Geographic location – Businesses in Queensland and Western Australia benefit from proximity to mines, while NSW and Victoria provide strong construction demand.
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Brand reputation – Review partnerships, referrals, and long-term maintenance contracts.
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Service offering – Consider whether the business provides preventative maintenance, upgrades, or predictive analytics alongside standard repairs.
3. Is the Business Positioned for Industry Shifts?
Why It Matters
The sector is being reshaped by predictive maintenance technology, electrification delays, and workforce challenges. Firms that embrace innovation and training can secure long-term contracts and reduce reliance on reactive repair services.
What to Check
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Technology adoption – Does the business use predictive analytics, maintenance software, or remote diagnostics?
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Electrification readiness – Review plans for servicing electric heavy machinery as it enters the market later this decade.
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Skilled workforce – Skilled technicians are in short supply; assess training, retention, and wage pressures.
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Growth alignment – Examine exposure to government housing and infrastructure projects, which will drive construction machinery demand.
Ready to Invest in a Thriving Machinery Business?
With strong links to mining, construction, and transport, machinery repair and maintenance remains a critical and resilient industry in Australia.
Success will depend on location, customer contracts, and readiness for technological change, from predictive analytics to electric fleets.
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