Industry Analysis & Industry Trends
Wholesalers of construction and mining equipment suffered during the subprime mortgage crisis, when overall construction activity plummeted. However, in the next five years, the industry will likely experience modest growth again. Construction levels will pick up, boosting demand for construction equipment and machinery. Meanwhile, high commodity prices and growing demand from emerging economies will encourage mining companies to ramp up their production, raising the need for more mining equipment... purchase to read more
Industry Report - Industry Investment Chapter
IBISWorld estimates that for every $1.00 spent on labor, the industry invests roughly $0.13 on capital expenses, indicating a medium level of capital intensity compared to other industries. In this wholesale industry, there is a medium level of money tied up in plant and equipment. Investment is primarily focused on equipment used in selling (e.g. sales representatives' motor vehicles), in handling and moving stock (such as warehouses, wracking and delivery vehicles) and in systems (e.g. computers and inventory management systems). Nevertheless, labor costs in this industry represent about 7.9% of the value of sales, which is low relative to non-wholesaling industries. The low level of labor costs is due to the relatively low level of value added to products... purchase to read more