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 - Starting a New Business Chapter
The Material Handling Equipment Distributors industry has moderate barriers to entry. Capital expenses can be quite significant due to the high cost of most industry products. In addition, setting up warehouses large enough to stock industry products can also be costly. High labour costs can act as an entry barrier. Another significant barrier is the stiff competition for the few lucrative distribution contracts. Prospective dealers have to demonstrate numerous capabilities including the ability to provide technical support, financing options and a strategy to establish a strong network.
The availability of niche product markets can reduce the level of competition and provide more scope for widening margins... purchase to read more