Industry Analysis & Industry Trends
Fundamental elements
As a key intermediary within the supply chain, the Chemical Wholesaling industry plays an important role in overall chemical manufacturing. The industry's revenue growth has been inconsistent, but improved downstream markets will bolster growth in the next five years. Looking ahead, the industry is projected to experience higher demand from the manufacturing and construction sectors, which will drive revenue growth. Still, increased government legislation and higher oil prices will raise chemical costs and squeeze profit margins... purchase to read more
Industry Report - Starting a New Business Chapter
The Chemical Wholesaling industry has moderate barriers to entry. The industry is characterized by a competitive nature because of its low concentration, with no single player accounting for a dominant market share. This indicates there is room in the marketplace for new wholesalers. However, capital expenditure is high. New entrants must outlay considerable capital to establish and maintain computerized inventory controls, machinery to move stock, warehousing and transportation. Established players have integrated supply and distribution systems with manufacturers and retailers, so large capital requirements are needed to replicate these relationships.
Because of a competitive retail environment, it is important for wholesalers to offer the most competitive prices to retailers... purchase to read more