Industry Analysis & Industry Trends
While the performance of the Farm Supplies Wholesaling industry largely depends on demand from the agriculture sector as a whole, the single most important determinant of revenue growth is the price of farm-supply inputs. Material inputs underwent a period of net growth during the past five years. Moreover, the industry is projected to experience stifled growth over the five years to 2021, as heightened demand from downstream livestock farmers is offset by a slow rise in farm input prices. Industry revenue tends to grow alongside the price of inputs because wholesalers pass along the majority of increased costs to downstream markets. IBISWorld forecasts subdued feed and fertilizer prices will grow revenue slowly... purchase to read more
Industry Report - Industry Investment Chapter
The Farm Supplies Wholesaling industry exhibits a moderate level of capital intensity; for every dollar spent on employee wages, $0.30 is spent on capital. Capital intensity has remained relatively stagnant over the past five years though the industry is becoming increasingly automated. Operators have adopted new technologies to help streamline the wholesaling process. For instance, technologies such as radio frequency identification (RFID) are used to track orders and inventory levels, limiting the need for labor.
At the same time, workers’ functions are shifting away from labor-intensive stocking and packaging activities toward customer relations... purchase to read more