Come in handy: Strong downstream construction activity will drive industry demand

The Tool and Hardware Wholesaling industry distributes a range of hardware products, including hand tools, power tools and fasteners, to retailers and other wholesalers and to businesses for end use. The tools distributed are used in construction as well as home improvement projects, with households, which are not served directly by industry operators, representing a major end market for industry products. Although the industry does not manufacture hardware, it adds value to end users by providing customized varieties of hardware at low prices and in large quantities. Depressed activity in downstream markets undercuts the need for hardware, tools and other industry products. Conversely, economic growth spurs demand for hardware products and associated services...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Continued demand from construction and manufacturing markets will drive growth
  • Operators have been expanding their product lines to become one-stop shops
  • Private nonresidential construction will rise, benefiting the industry
  • Industry Report - Industry Investment Chapter

    Like other wholesaling industries, the Tool and Hardware Wholesaling industry is not capital intensive. While the purchase of products and other inputs constitutes a significant cost for operators, outlay on capital does not. This is because nearly all aspects of the industry's provided services rely on labor. In 2018, IBISWorld expects operators to spend $0.06 on capital for every $1.00 spent on labor.Capital costs are mainly limited to the purchasing of warehousing facilities and the related machinery needed to manage them. These outlays include purchasing computerized inventory controls to monitor inventory as well as forklift machinery for loading trucks and shipping crates. Despite this, purchase and wage costs are much larger cost components for industry operators. Ind...purchase to read more.

    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 Number of households and Per capita disposable income in the Tool & Hardware Wholesaling industry impact industry performance..

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    What's in this report

    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 hand tools
  • Bolts, nuts, rivets and other fasteners (excludes nails)
  • Plywood, panels and millwork
  • 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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of households
  • Per capita disposable income
  • Industrial production index
  • Value of construction
  • Demand from home improvement stores
  • Demand from hardware stores

  • Current Performance
  • Steady but slowed growth in downstream construction industries
  • Market share to remain low among industry operators
  • Chart: Revenue Growth

  • Industry Outlook
  • Nonresidential and utilities construction
  • 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

  • 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 hand tools
  • Other
  • Plywood, panels and millwork
  • Chart: Tool & Hardware Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Demand from home improvement stores
  • Demand from industrial users and contractors

  • Major Markets
  • Retailers for resale
  • Other wholesalers and distributors
  • All other customers
  • Manufacturing and industrial users
  • building, heavy construction and specialty contractors
  • Chart: Major Market Segmentation for the Tool & Hardware 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 Tool & Hardware Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tool & Hardware 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 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
    Table: Industry Data for the Tool & Hardware Wholesaling Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Number of Households (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • 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).
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Tool & Hardware Wholesaling can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    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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