Industry Analysis & Industry Trends
Demand for tool and hardware wholesaling depends on construction activity, so the US recession made conditions tough for industry firms. Housing starts, a key indicator of industry performance, plummeted during the recession. Depressed demand from construction, coupled with growing levels of wholesale bypass, caused revenue to decline and forced many wholesalers to close. Although wholesale bypass will continue, industry performance will improve in the next five years as downstream industries recover... purchase to read more
Industry Report - Industry Investment Chapter
In 2013, wages in the Tool and Hardware Wholesaling industry are expected to account for about 12.2% of revenue, while depreciation is expected to account for a share of 2.9%. These figures signify that the industry has a medium level of capital intensity, with roughly $4.21 spent on labor for every dollar spent on capital equipment. Capital costs in the Tool and Hardware Wholesaling industry are mainly incurred in purchasing warehousing facilities and the related machinery. These outlays include purchasing computerized inventory controls to monitor inventory as well as forklift machinery for loading trucks and shipping crates. Despite the increasing usage of computerized inventory controls, human labor will always be required to check orders and provide customer assistance... purchase to read more