Industry Analysis & Industry Trends
The Material Handling Equipment Distributors industry has faced turbulent conditions driven by the resources boom over the past five years. The unprecedented investment in the development of Australia's mineral and energy resources lifted industry sales to new heights in 2012-13, but the subsequent weakening of commodity prices and the scaling back of investment in the Mining division caused a dramatic decline in the industry's performance. The supply of equipment through leasing arrangements can help stabilise the industry's income stream and mitigate the volatility arising from fluctuations in interest rates and foreign exchange rates.
Over the five years through 2015-16, industry revenue is projected to decline by an annualised 1.6% due to wide cyclical fluctuations in sales... purchase to read more
Industry Report - Industry Investment Chapter
IBISWorld measures the level of capital intensity in an industry by determining the ratio of depreciation to labour costs. Operators in the Material Handling Equipment Distributors industry allocate $5.93 on labour costs for every dollar spent on capital equipment. This indicates the industry operates at a moderate level of capital intensity, broadly consistent with the general economy.
Industry operators typically require substantial areas of land and warehouse facilities to store stock for sale or hire to customers. Assembly and storage are important aspects of the business and represent a large portion of the industry's capital assets. Support structures and various assembling equipment are required in the industry's activities... purchase to read more