Industrious improvement: Revenue to rebound after years of decline due to falling commodity prices

At the outset of the five-year period to 2018, high commodity prices and increased industrial activity supported growing demand for the products of the Industrial Machinery and Equipment Wholesaling industry. However, a later decline in commodity prices, primarily for oil and gas, stifled demand for industry products. In 2013 and 2014, the industry improved considerably as a result of a resurgence in production across its primary markets. This demand has subsided in recent years, however, as previously pent-up demand has been satiated. Over the next five years, stronger growth in the industry's downstream markets will lead to higher demand for industrial machinery and equipment. Stronger commodity prices should drive demand from key industrial markets...purchase to read more.

Industry Statistics & Market Size
Revenue
$244bn
Annual Growth 13-18
-0.7%
Forecast Growth 18-23
Profit
Employment
389,692
Businesses
30,758
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The decline in commodity prices, primarily oil and gas prices, stifled demand for industry products
  • Growth had been fueled by a recovery in the automobile and heavy-machinery segments
  • Improving conditions in downstream markets will translate to higher demand
  • Industry Report - Industry Investment Chapter

    The Industrial Machinery and Equipment Wholesaling industry has a low level of capital intensity. On average, operators in the industry spend $0.09 on machinery, equipment and other capital expenses for every dollar spent on labor. In 2018, wages are estimated to account for 11.6% of industry revenue. Meanwhile, depreciation costs, which serve as a proxy for capital investments, are estimated to total 1.0%. This industry relies on employees with customer service, sales and marketing skills. Over the five years to 2018, capital expenditures as a share of revenue have increased slightly. Wag...purchase to read more.

    Additional Insights for the Industrial Machinery & Equipment Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Industrial Machinery & Equipment Wholesaling Industry are

  • Ability to clearly specify requirements to suppliers/contractors
  • Having a loyal customer base
  • Having a good technical knowledge of the product
  • IBISWorld analysts also discuss how external factors such as Private investment in industrial equipment and machinery and Demand from oil drilling and gas extraction in the Industrial Machinery & Equipment Wholesaling industry impact industry performance..

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    What's in this report

    What is the Industrial Machinery & Equipment Wholesaling Industry?

    Industrial machinery and equipment wholesalers primarily distribute specialized machinery, equipment and related parts used in manufacturing, extraction and warehousing industries. Wholesalers refrain from selling products to the public but distribute new and used products to various sectors, as well as service receipts from repairs and labor performed on customer equipment.

    Industry Products
  • General-purpose machinery and equipment
  • Other industrial machinery and equipment
  • Oil well, refinery and pipeline machinery and equipment
  • Material-handling equipment
  • Metalworking machinery and equipment
  • Hydraulic and pneumatic (fluid-power) machinery and equipment
  • Food-processing machinery
  • Industry Activities
  • Wholesaling general-purpose industrial machinery and equipment
  • Wholesaling other industrial machinery and equipment
  • Wholesaling oil-well machinery and equipment
  • Wholesaling material-handling machinery and equipment
  • Wholesaling metalworking machinery and equipment
  • Performing service and labor on equipment and machinery
  • Wholesaling food-processing machinery and equipment
  • Wholesaling hydraulic and pneumatic equipment and machinery
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Private investment in industrial equipment and machinery
  • Demand from oil drilling and gas extraction
  • Industrial production index
  • Value of utilities construction
  • Import penetration into the manufacturing sector

  • Current Performance
  • Oil and gas markets drag on demand
  • Other markets remain strong
  • Depressed profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream growth potential
  • Industry landscape
  • Table: Industrial Machinery & Equipment Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Industrial Machinery & Equipment Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Oil Drilling & Gas Extraction
  • Construction
  • Manufacturing
  • Machine Shop Services
  • Wholesale Trade
  • Retail Trade
  • Public Storage & Warehousing
  • Public Administration

  • Key Selling Industries
  • Copier & Optical Machinery Manufacturing
  • Forklift & Conveyor Manufacturing
  • Metalworking Machinery Manufacturing
  • Mining, Oil & Gas Machinery Manufacturing
  • Pump & Compressor Manufacturing
  • Valve Manufacturing
  • Woodworking Machinery Manufacturing

  • Products & Services
  • General-purpose machinery and equipment
  • Other industrial machinery and equipment
  • Oil well, refinery and pipeline machinery and equipment
  • Material-handling equipment
  • Metalworking machinery and equipment
  • Hydraulic and pneumatic (fluid-power) machinery and equipment
  • Food-processing machinery
  • Chart: Industrial Machinery & Equipment Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Private investment in new machinery and equipment
  • Replacement demand
  • Seasonality

  • Major Markets
  • Manufacturers
  • Wholesalers
  • Businesses for end use
  • Other markets
  • Retailers for resale
  • Building, heavy construction and special trade contractors
  • Repair shops
  • Government bodies
  • Chart: Major Market Segmentation for the Industrial Machinery & Equipment Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Industrial Machinery & Equipment Wholesaling

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Industrial Machinery & Equipment Wholesaling Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Industrial Machinery & Equipment Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Industrial Machinery & Equipment Wholesaling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Private investment in industrial equipment and machinery (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Capacity Utilization
  • In the context of this industry, the percentage of manufacturing capacity (e.g. a plant) actually used for production purposes.
  • Maintenance, Repair And Operations (Mro)
  • Machinery and equipment used mainly for maintenance and repair purposes, including conveyors and plumbing tools.
  • Offshoring
  • The relocation of a company's business process, such as manufacturing or accounting, from one country to another, whether the work is outsourced or stays within the company.
  • What Our Customers Say

    Why buy this report?

    The Industrial Machinery & Equipment Wholesaling Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Industrial Machinery & Equipment Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Industrial Machinery & Equipment Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Industrial Machinery & Equipment Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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