Industry Analysis & Industry Trends
In the past five years, the Metal and Mineral Wholesaling industry has benefited from the mining investment boom, strong foreign demand and stable domestic growth. Demand from engineering construction for basic metal products, such as structural sections, has been particularly strong, reflecting investment in resource projects and associated construction and building infrastructure. Firms supplying other sectors, including automotive manufacturers and the residential housing market, have generally fared less well.
Industry revenue is expected to increase at an annualised 1.2% over the five years through 2014-15, driven by increased mining investment and high foreign demand over these years. Growth has been constrained by the ongoing trend of wholesale bypass... purchase to read more
Industry Report - Industry Investment Chapter
The Metal and Mineral Wholesaling industry's capital intensity is at a low level. Some capital investment is required for materials-handling equipment and computerised stock control systems. To calculate the capital intensity level, IBISWorld uses data from the industry cost structure. Depreciation is used as a proxy for capital expenditure, and is expected to account for 0.2% of industry revenue in 2014-15. Wages are used as a proxy for labour, and are expected to account for 4.9% of industry revenue for the year. Therefore, for each $1.00 invested in industry plant and equipment, approximately $24.35 is required for labour inputs.
Although labour costs account for a small share of industry revenue, there is variation across the industry... purchase to read more