Strategic alloys: Rising downstream demand will sustain industry revenue despite volatile input costs

Operators in the Metal Wholesaling industry are expected to generate $208.0 billion in revenue in 2018, making this one of the largest industries in the United States. Metal wholesalers purchase primary metal products in bulk from manufacturers and distribute them to markets on a customized basis. They primarily distribute iron and steel, in addition to nonferrous metals like copper, brass and aluminum. Moving forward, stabilization in metal prices is expected to boost revenue growth. Meanwhile, persistent demand for metal inputs in the manufacturing, mining and construction sectors will reinforce demand for metal wholesaling services. Nevertheless, IBISWorld expects industry revenue to stagnate over the five years to 2023...purchase to read more.

Industry Statistics & Market Size
Revenue
$208bn
Annual Growth 13-18
-1.4%
Forecast Growth 18-23
Profit
Employment
152,096
Businesses
9,722
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
  • Many US-based manufacturing facilities have used less-costly imports, reducing industry demand
  • Industry Report - Industry Analysis Chapter

    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. Over the five years to 2018, industry revenue is expected to decline at an annualized rate of 1.4%, largely due to extreme metal price volatility. Aft...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
  • Less volatile metal prices
  • 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
  • Profit
  • Purchases
  • Wages
  • Other 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • World Price of Steel (2009-2023)

  • 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 Industry Market Report on Metal Wholesaling is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    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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