Tool & Hardware Wholesaling in Canada - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS 41633CARevenue
$23.2bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
24,565
Businesses
1,178
Wages
$X.Xbn
Tool & Hardware Wholesaling in Canada industry analysis
Tool and hardware wholesaling's performance largely hinges on domestic manufacturing and construction output, though some wholesalers near the border also serve markets in the United States. Canadian wholesalers benefited greatly in 2020 and 2021 as near-zero interest rates and higher disposable income led to a drastic jump in housing starts. Worsening macroeconomic factors, including heightened economic uncertainty, rising inflationary pressures and higher interest rates, negatively impacted distributors, harming demand from the nonresidential and manufacturing sectors. However, these losses failed to reverse the gains from the residential sector. These trends have caused revenue to grow at an estimated CAGR of 5.9% to $23.2 billion through the end of 2024, including a 1.2% dip that year alone.
Trends and Insights
- Jumps in housing starts push demand for wholesalers higher. During the initial stages of the pandemic, near-zero interest rates and high disposable income led to drastic gains in housing starts, driving revenue growth.
- Fasteners are used for home repair projects and tiling, roofing and other construction projects. The widespread use of fasteners across multiple industries has made it the most popular product wholesalers carry.
- Ontario has the most wholesalers. This region is home to the largest share of the population, holds various downstream markets and offers easy access to the US border, making it attractive to wholesalers.
- Transportation costs prevent high concentration. Having the ability to deliver stock on time while limiting transportation costs prevents many wholesalers from gaining a large market share as buyers remain geographically dispersed.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 5.9 % over the past five years, to reach an estimated $23.2bn in 2024.
Trends and Insights
Jumps in demand from the residential sector lead to revenue growth
- During the initial stages of the pandemic, wholesalers benefited from elevated demand from residential consumers. Near-zero interest rates and higher disposable income resulted in a jump in housing starts, driving demand for new tools and hardware.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Improving macroeconomic conditions drive revenue growth
- The Canadian economy is forecast to begin recovering over the upcoming years, creating growth opportunities for tool and hardware wholesalers. Higher levels of consumer spending create direct and indirect demand for tools and hardware through more sales at the retail level and higher demand for the manufacturing and construction sectors.
Biggest companies in the Tool & Hardware Wholesaling in Canada
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Grainger | 174.4 | 26.5 | 15.2 | |
Vallen | 151.0 | 10.2 | 6.8 | |
Richelieu | 113.6 | 11.5 | 10.1 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Fasteners wholesaling, Hand and power tools wholesaling and Panellings, roofing, wallboards, mouldings and sidings. Fasteners wholesaling is the largest segment of the Tool & Hardware Wholesaling in Canada.
Trends and Insights
Fasteners wholesaling's segment size shrank
- Fasteners are hardware devices that mechanically affix two or more objects together, including screws, nuts, bolts and rivets. Also included in this segment are sales of nails, iron and stilling wiring and wiring products.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Hardware Stores in Canada
Complementors
- Auto Parts Wholesaling in Canada
- Metal Wholesaling in Canada
- Construction & Forestry Equipment Wholesaling in Canada
- Farm, Lawn & Garden Equipment Wholesaling in Canada
International industries
- Roofing, Siding & Insulation Wholesaling in the US
- Tool & Hardware Wholesaling in the US
- Plumbing & Heating Supplies Wholesaling in the US
- Plumbing Goods Wholesaling in Australia
- Hardware Wholesaling in Australia
Table of Contents
About this industry
Industry definition
This industry wholesales a range of hardware products including fasteners, hand tools, power tools, locks and keys, metal knives and saw blades. Wholesalers purchase products in bulk and distribute them at competitive prices to users in the manufacturing, construction and commercial sectors. However, this industry does not distribute motor vehicle hand tools or machinists’ precision hand tools.
What's included in this industry?
Fasteners wholesalingHand and power tools wholesalingPanellings, roofing, wallboards, mouldings and sidings wholesalingKeys, locks and security hardware wholesalingMetal cutlery wholesalingCompanies
GraingerVallenRichelieuPurchase this report to view all 3 major companies in this industry.
Related Terms
FASTENERSPOWER TOOLSWHOLESALE BYPASSDO-IT-YOURSELF (DIY)Industry Code
NAICS 416330 - Tool & Hardware Wholesaling in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Jumps in housing starts push demand for wholesalers higher. During the initial stages of the pandemic, near-zero interest rates and high disposable income led to drastic gain...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Fasteners are used for home repair projects and tiling, roofing and other construction projects. The widespread use of fasteners across multiple industries has made it the mo...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Ontario has the most wholesalers. This region is home to the largest share of the population, holds various downstream markets and offers easy access to the US border, making...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each province in 2024
- Number and share of revenue each province accounts for in 2024
- Number and share of wages each province accounts for in 2024
- Number and share of employees in each province in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Transportation costs prevent high concentration. Having the ability to deliver stock on time while limiting transportation costs prevents many wholesalers from gaining a larg...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Richelieu Hardware is the largest company in this industry. Richelieu Hardware has expanded its market share through a series of acquisitions in Canada and the United States.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Grainger's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Vallen's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Richelieu's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Grainger, and factors influencing its performance in the industry
- Description and key data for Vallen, and factors influencing its performance in the industry
- Description and key data for Richelieu, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Canadian Government has been investing in infrastructure. Through the Investing in Canada Infrastructure Program, the government is improving infrastructure across te cou...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Purchase costs will likely stay high as they are essential to the industry. Wholesalers often purchase products from independent manufacturers, although a few of the largest ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Assets (2017-2022)
- Liabilities (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Tool & Hardware Wholesaling industry in Canada in 2024?
The market size of the Tool & Hardware Wholesaling industry in Canada is $23.2bn in 2024.
How many businesses are there in the Tool & Hardware Wholesaling in Canada industry in 2024?
There are 1,178 businesses in the Tool & Hardware Wholesaling industry in Canada, which has declined at a CAGR of 1.1 % between 2019 and 2024.
Has the Tool & Hardware Wholesaling industry in Canada grown or declined over the past 5 years?
The market size of the Tool & Hardware Wholesaling industry in Canada has been growing at a CAGR of 5.9 % between 2019 and 2024.
What is the forecast growth of the Tool & Hardware Wholesaling industry in Canada over the next 5 years?
Over the next five years, the Tool & Hardware Wholesaling industry in Canada is expected to grow.
What are the biggest companies in the Tool & Hardware Wholesaling market in Canada?
The biggest companies operating in the Tool & Hardware Wholesaling market in Canada are Grainger, Vallen and Richelieu
What does the Tool & Hardware Wholesaling in Canada include?
Fasteners wholesaling and Hand and power tools wholesaling are part of the Tool & Hardware Wholesaling industry.
Which companies have the highest market share in the Tool & Hardware Wholesaling in Canada?
The company holding the most market share in Canada is Grainger.
How competitive is the Tool & Hardware Wholesaling industry in Canada?
The level of competition is high and increasing in the Tool & Hardware Wholesaling industry in Canada.
