Tool up: Housing starts are anticipated to remain strong, driving demand for industry products

IBISWorld’s Tool & Hardware Wholesaling market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.


Industry Threats & Opportunities

  • Continued demand from construction and manufacturing markets will drive growth
  • A rising industrial production index has been central to the industry's revenue growth
  • Revenue will grow in light of rebounding demand from the manufacturing sector

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    Industry Analysis & Industry Trends

    Demand for Tool and Hardware Wholesaling industry services depends principally on the level of construction in the economy and secondarily on the vitality of manufacturing industries. After a slump in demand following the recession, downstream markets have rebounded, propelling industry revenue growth. Although the industry does not manufacture hardware, it adds value to end users by providing customized varieties of hardware at low prices. Still, depressed activity in downstream markets undercuts the need for hardware tools altogether, slashing industry revenue. Continued demand from construction and manufacturing markets is expected to drive further revenue growth in the five years to 2022...

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    Industry Report - Industry Locations Chapter

    Due to demand linkages with the construction sector, particularly the residential, operator location is influenced by factors such as population dispersion, general economic activity and construction investment. In general, more populated regions will have a greater demand for residences, propelling the need for hardware products. Cities with extensive industrial facilities will generally also attract hardware wholesaling establishments, since proximity to major industrial markets reduces costs incurred by wholesalers and improves the delivery time. For these reasons, establishments of the Tool and Hardware Wholesaling industry are concentrated in the Southeast, Great Lakes and West regions of the United States. Cal..

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    Additional Insights for the Tool & Hardware Wholesaling Industry

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

  • Proximity to key markets
  • Having contacts within key markets
  • Having a good technical knowledge of the product
  • IBISWorld analysts also discuss how external factors such as Housing starts and Demand from home improvement stores in the Tool & Hardware Wholesaling industry impact industry performance..

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    Industry Products

    What is the Tool & Hardware Wholesaling Industry?

    Operators in this industry purchase and distribute a range of hardware products, including hand tools, power tools, locks and keys, metal cutlery, fasteners and saw blades. Operators purchase these products in large volumes before distributing them in customized varieties and at competitive prices to retailers, other wholesalers and end-use industries. This industry does not distribute nails, disposable plastic cutlery, hand tools for motor vehicles or hand tools for precision equipment.

    Industry Products
    Hand tools and power tools
    Bolts, nuts, rivets and other fasteners (excludes nails)
    Plumbing and hydronic heating equipment
    Miscellaneous hardware
    Industry Activities
    Fastening product wholesaling (e.g. bolts, nuts, rivets and screws)
    Hand tool wholesaling (e.g. screwdrivers)
    Power hand tool wholesaling (e.g. drills)
    Saw blade wholesaling
    Plumbing and water heating equipment wholesaling
    Metal cutlery wholesaling

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Housing starts
  • Demand from home improvement stores
  • Industrial production index
  • National unemployment rate

  • Current Performance
  • Rapid housing construction
  • Vertical integration bolsters profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Construction and manufacturing activity
  • Industry landscape
  • Table: Tool & Hardware Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tool & Hardware Wholesaling Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Electricians
  • Tile Installers
  • Flooring Installers
  • Roofing Contractors
  • Home Improvement Stores
  • Hardware Stores
  • Heating & Air-Conditioning Contractors

  • Key Selling Industries
  • Car & Automobile Manufacturing
  • Hardware Manufacturing
  • Storage & Warehouse Leasing

  • Products & Services
  • Bolts, nuts, rivets and other fasteners (excludes nails)
  • Hand tools and power tools
  • Miscellaneous hardware
  • Plumbing and hydronic heating equipment
  • Chart: Tool & Hardware Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Demand from households
  • Demand from construction

  • Major Markets
  • Retailers
  • Other wholesalers
  • Manufacturing and mining industries
  • Building contractors and heavy construction
  • Businesses and others for end use
  • Chart: Major Market Segmentation for the Tool & Hardware Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Tool & Hardware Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tool & Hardware Wholesaling Industry

  • Industry Globalization
    Major Companies
    Stanley Black & Decker Inc.Ace Hardware Corp.
  • Table: Stanley Black & Decker Inc. - financial performance
  • Table: Ace Hardware Corp. - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Tool & Hardware Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Tool & Hardware Wholesaling Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Housing Starts (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
  • Building, modifying or repairing of something without the aid of experts or professionals.
  • Just-In-Time
  • A strategy implemented to improve profitability by reducing inventory and purchasing the raw materials that are needed for the immediate term only.
  • Retailer Bypass
  • A popular trend within wholesale where operators supply goods directly to end-user industries, reducing the reliance on the middleman.
  • Vertical Integration
  • Owning different parts of the supply chain, either in the form of forward integration (owning upstream suppliers) or backward integration (owning downstream buyers).
  • Why buy this report?

    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 Tool & Hardware 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 Tool & Hardware 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 Tool & Hardware Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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