Industry Analysis & Industry Trends
The Metal Wholesaling industry was severely hammered by the recession. This is because metal wholesalers and service centers supply metal products to almost every manufacturing and construction industry, and the economic downturn hit these downstream buyers hard. However, resurgence in demand for metal products from these downstream markets, including the increases in residential and nonresidential construction, will aid profit... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry into the Metal Wholesaling industry vary depending on the service a new firm is planning to offer. Overall, barriers to entry are moderate, but the industry has historically lacked appeal to startups because of its low profit margins.
Barriers to entry are relatively low for general line service centers, which primarily focus on distribution rather than processing. These centers do not need to invest in expensive processing equipment. However, these firms operate on low margins, so high sales volumes are advantageous and often necessary. A moderate level of investment in stock is therefore required to enter the industry as a general line service center... purchase to read more