Industry Analysis & Industry Trends
Although growing demand for industry products has benefited the Computer and Packaged Software Wholesaling industry, the rise of the direct-sales model has dampened growth prospects for operators. Even though the economy has stabilized and strengthened and corporate profit has grown over the five years to 2016, industry revenue is estimated to decline. In the coming years, industry revenue will benefit from growth in unit sales of computer-related products brought on by continued economic recovery. Wholesalers will also benefit from computer manufacturers' increased productivity resulting from consolidations and technological innovations... purchase to read more
Industry Report - Industry Investment Chapter
There is a low level of capital intensity in the Computers and Packaged Software Wholesaling industry. IBISWorld estimates that for every $1.00 spent on wages, operators allocate $0.04 on capital expenditures. Low levels of capital are characteristic of many wholesaling industries. Capital is tied up in areas mainly limited to inventories, equipment used in selling (e.g. sales representatives' motor vehicles), warehouses, racking and delivery vehicles and computers and inventory management systems. These costs only make up a small fraction of total industry revenue.
Capital investment in this industry has grown over the past five years. As demand for industry products faltered, sales growth slowed and inventories fell... purchase to read more