Industry Analysis & Industry Trends
Demand for computers, related accessories and software consistently grows from year to year. Though growing demand benefits the Computer and Packaged Software Wholesaling industry, the rise of the direct-sales model has dampened revenue. Over the next five years, IBISWorld projects that industry revenue will increase because of a rise in unit sales of computers and computer-related products. Due to a combination of technological advances and manufacturers becoming more productive as a result of recession-era consolidation, the price of computers and related equipment will fall... purchase to read more
Industry Report - Industry Investment Chapter
Labor costs are 17 times greater than capital costs, which is high compared to other industries. In this wholesale industry, there is a low level of capital tied up in plant and equipment. Instead, capital is tied up in areas mainly limited to inventories and debtors, equipment used in selling (e.g. sales representatives' motor vehicles), in handling and moving stock (such as warehouses, racking and delivery vehicles) and in systems (e.g. computers and inventory management systems). However, these costs combined account for a miniscule fraction of total industry revenue. Similarly, labor costs in this industry represent less than 9.0% of the value of sales, which is low. The low level of labor costs is due to the relatively low level of value added to products... purchase to read more