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 infrastructure. Firms supplying other sectors, including automotive manufacturers and the residential housing market, fared less well.
Industry revenue is estimated to increase at an annualised 4.6% over the five years through 2013-14, driven by the strength of the mining investment boom and high foreign demand. Growth would likely have been even stronger if not for the ongoing trend of wholesale bypass... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry to the Metal and Mineral Wholesaling industry are moderate. Key barriers to entry are the ability to raise substantial amounts of working capital, having established supply and demand industry contacts and more critically, developing a reputation for timeliness and competitiveness.
Firms in the industry generally either compete based on high volumes and low margins, or lower volumes and higher margins. A high volume operator will need to raise substantial amounts of capital to commence operation on a large scale. Barriers to entry are significant for small operators but are smaller for major players in the metal manufacturing and mineral mining industries seeking vertical integration... purchase to read more