On the ropes: Falling manufacturing demand and rising imports will stifle industry revenue growth

The Industrial Supplies Wholesaling industry's demand depends on the general level of manufacturing and repair activity in the US economy. A range of operators, from auto mechanics to teams repairing and maintaining industrial facilities, use industrial supplies and are likely to turn to wholesalers to purchase these supplies in customized packages instead of in bulk. The necessity of locating operations close to consumers has kept the industry geographically fragmented with a low level of market share concentration. Still, high competition within localities, general saturation of the market and fluctuating profitability have led to several company exits. More exits are forecast to occur over the next five years, as industrial production grows and revenue begins to rise...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies

Industry Threats & Opportunities

  • Waning demand for manufacturing is expected to cause revenue to decline
  • The average profit margin conceals discrepant performance among individual operators
  • Revenue is forecast to grow as interest rates rise and the economy settles on softer long-term growth
  • Industry Report - Industry Key Buyers Chapter

    Industry concentration is low, due to the fact that wholesaling services are more competitive when located in proximity to downstream markets. Therefore, most operations are localized. To increase market share, a large operator would have to spread its distribution plants across the country, limiting the benefit from economies of scale. The four largest companies in the industry account for 15.2% of industry revenue. Genuine Parts, the largest operator in the industry, accounts for only 6.0% of industry revenue.Beyond the handful of large players, the industry comprises medium and small-scale operators servicing localized markets and generating a miniscule portion of industry revenue. Ove...purchase to read more.

    Additional Insights for the Industrial Supplies Wholesaling Industry

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

  • A loyal customer base
  • Links with suppliers
  • Technical product knowledge
  • IBISWorld analysts also discuss how external factors such as Demand from primary metal manufacturing and Industrial production index in the Industrial Supplies Wholesaling industry impact industry performance..

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    What's in this report

    What is the Industrial Supplies Wholesaling Industry?

    This industry wholesales general-use supplies for manufacturing and warehousing industries. Supplies include abrasives, barrels, boxes and crates, industrial containers, industrial diamonds, packaging material, printing ink, power transmission supplies, mechanical rubber goods, ropes, valves and welding supplies. The industry strictly distributes general-use industrial supplies; for example, it provides the automotive sector with valves but not with tires.

    Industry Products
  • Mechanical power transmission supplies
  • Industrial containers
  • Abrasives, strapping and tape
  • Industrial valves and fittings
  • Welding supplies
  • Other supplies
  • Industry Activities
  • Wholesaling industrial containers
  • Wholesaling industrial diamonds
  • Wholesaling printing inks
  • Wholesaling refractory materials
  • Wholesaling welding supplies
  • Wholesaling other supplies
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from primary metal manufacturing
  • Industrial production index
  • Trade-weighted index
  • Corporate profit
  • Yield on 10-year Treasury note

  • Current Performance
  • Industrial expansion
  • Profit margins
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand factors
  • Industry structure
  • Vertical integration
  • Table: Industrial Supplies Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Seafood Preparation
  • Soda Production
  • Bottled Water Production
  • Juice Production
  • Breweries
  • Construction Machinery Manufacturing
  • Mining, Oil & Gas Machinery Manufacturing
  • Car & Automobile Manufacturing
  • SUV & Light Truck Manufacturing
  • Truck & Bus Manufacturing

  • Key Selling Industries
  • Boiler & Heat Exchanger Manufacturing
  • Engine & Turbine Manufacturing
  • Power Tools & Other General Purpose Machinery Manufacturing
  • Valve Manufacturing
  • Wind Turbine Manufacturing

  • Products & Services
  • Abrasives, strapping and tape
  • Industrial containers
  • Other supplies
  • Mechanical power transmission supplies
  • Industrial valves and fittings
  • Welding supplies
  • Chart: Industrial Supplies Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Industrial users for production inputs
  • Other wholesalers for resale
  • Businesses for end use
  • Other
  • Retailers for resale
  • Building contractors
  • Chart: Major Market Segmentation for the Industrial Supplies Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Industrial Supplies Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Industrial Supplies Wholesaling Industry

  • Industry Globalization
    Genuine Parts Company,
  • Table: Genuine Parts Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Industrial Supplies 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 Supplies Wholesaling Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Industrial production index (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • Materials used for surface finishing, grinding and cutting.
  • Bearings
  • Structural parts that support weight and bear friction between rotating parts.
  • Industrial Diamond
  • Diamond that falls short of gem quality and is instead used as an abrasive for grinding and cutting surfaces.
  • Original Equipment Manufacturer
  • Abbreviated OEM, a company that manufactures products or components that are purchased by a company and retailed under the purchasing company's brand name.
  • Welding
  • The process by which metal pieces or parts are joined together by heating surfaces to a melting point.
  • Wholesale Bypass
  • The process by which retailers source directly from manufacturers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industrial Supplies Wholesaling Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
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    This report on Industrial Supplies 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 Supplies 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 Supplies Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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