Industry Analysis & Industry Trends
The Grocery Wholesaling industry will continue to contract in size as intense competition and rising production costs continue to drive food manufacturers and supermarkets to cut out the middleman. As manufacturers and retailers become more involved in the distribution process, demand and revenue will drop as the industry's services become less necessary. These factors will cause the industry to continue consolidating throughout the five years to 2018... purchase to read more
Industry Report - Industry Investment Chapter
The Grocery Wholesaling industry has a low level of capital intensity. On average, for every $1.00 industry firms spend on labor they spend only $0.07 cents on capital. Expenditure on capital for this industry comes in the form of computerized inventory systems, shelves and refrigerators and freezers to store food items. The industry's use of capital has been increasing through technological advancements, which have enabled computers to take over tasks traditionally performed by labor, such as ordering. There will always be a need for some labor components to be involved in checking that orders are correct.
Labor costs are incurred through the transportation of products to customers, taking orders and maintaining inventory levels... purchase to read more