Slight rusting: Volatile metal prices have continued to plague industry revenue growth

Operators in the Metal Wholesaling industry distribute primary metals and metal products to manufacturing, utilities and construction industries and businesses for end-use. Oversupply of steel, aluminum and other metals over the past few years has put downward pressure on prices, reducing the value of inventory and weakening the industry's profit margins. Recovering manufacturing and construction activity has spurred growing demand for metal inputs, underpinning some growth for metal wholesaler services. Even so, drastic price drops in steel and aluminum drove the industry into decline during the majority of the five-year period to 2017...purchase to read more.

Industry Statistics & Market Size
Revenue
$183bn
Annual Growth 12-17
-4.9%
Forecast Growth 17-22
Profit
Employment
156,292
Businesses
7,094
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Increasing activity in the manufacturing, mining and construction sectors spurs demand for metal inputs
  • Metal prices have faltered, instigated by rising global supply
  • Metal wholesalers will benefit most from growth in nonresidential construction
  • Industry Report - Industry Products Chapter

    Iron and steel productsThe Metal Wholesaling industry sells a variety of products, but revenue is predominantly generated from the sale of iron and steel products. Products within this segment include sheet and tin plate bars, wire rods, forgings, beams, hot-rolled and cold-rolled strips, hot-rolled sheets, strappings and reinforcement mesh, pipes, tubing and concrete reinforcing bars. Together, these products generate about 63.0% of industry revenue and are expected to remain the main revenue-generating segment moving forward. Major buyers of steel plate and coil include automotive, aerospace, ship, boat and machinery manufacturers as well as fabricated metal product manufacturers and operators in the nonresidential construction sector. Ste...purchase to read more.

    Additional Insights for the Metal Wholesaling Industry

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

  • Effective quality control
  • Ability to control stock on hand and maintain appropriate inventory levels
  • Having links with suppliers
  • IBISWorld analysts also discuss how external factors such as World price of steel and Industrial production index in the Metal Wholesaling industry impact industry performance..

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    What's in this report

    What is the Metal Wholesaling Industry?

    Metal wholesaling operators distribute primary metal products, both ferrous and nonferrous, to industrial and construction markets. Operators maintain inventory and may perform functions like sawing and cleaning on a custom basis and also as part of the distribution service. However, operators do not distribute precious metals, such as gold, silver and platinum, nor do they distribute insulated wire or recyclable metal scrap.

    Industry Products
  • Wholesaling iron and steel products
  • Wholesaling copper and brass products
  • Wholesaling aluminum products
  • Wholesaling other nonferrous metals and products
  • Wholesaling stainless steel and alloys
  • Industry Activities
  • Wholesaling iron and steel products
  • Wholesaling stainless and alloy steel
  • Wholesaling copper and brass products
  • Wholesaling aluminum products
  • Wholesaling other nonferrous metals and products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of steel
  • Industrial production index
  • Value of construction
  • World price of aluminum

  • Current Performance
  • Industrial production spurs demand
  • Faltering metal prices constrain growth
  • Structural trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Industrial production spurs demand
  • Faltering metal prices constrain growth
  • Structural trends
  • Table: Metal Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Utilities
  • Construction
  • Tractors & Agricultural Machinery Manufacturing
  • Construction Machinery Manufacturing
  • Mining, Oil & Gas Machinery Manufacturing
  • Truck, Trailer & Motor Home Manufacturing
  • Aircraft, Engine & Parts Manufacturing
  • Space Vehicle & Missile Manufacturing
  • Train, Subway & Transit Car Manufacturing
  • Ship Building

  • Key Selling Industries
  • Aluminum Manufacturing
  • Iron & Steel Manufacturing
  • Metal Pipe & Tube Manufacturing
  • Metal Tank Manufacturing
  • Metalworking Machinery Manufacturing
  • Nonferrous Metal Refining

  • Products & Services
  • Wholesaling iron and steel products
  • Wholesaling stainless steel and alloys
  • Wholesaling other nonferrous metals and products
  • Wholesaling aluminum products
  • Wholesaling copper and brass products
  • Chart: Metal Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Manufacturing and mining industries
  • Other wholesalers for resale
  • Building contractors
  • Businesses for end use
  • Other markets
  • Chart: Major Market Segmentation for the Metal Wholesaling Industry

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

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Metal 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 Metal 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 Metal Wholesaling Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • World Price of Steel (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Alloy
  • A metallic mixture of two or more elements created to enhance the properties of its original elements.
  • Mill
  • A manufacturing plant that produces metals.
  • Nonferrous Metal
  • A metal, such as aluminum, that does not contain iron.
  • Original Equipment Manufacturer
  • A company that manufactures products or components that a company purchases and retails under the purchasing company's brand name.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Metal 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:
    • 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 Metal 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 Metal 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 Metal Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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