Industry Analysis & Industry Trends
The Metal and Mineral Wholesaling industry has suffered from lower metal and ore prices over the past five years, which have contributed to revenue falls. However, these pricing declines have been largely offset by higher volumes, minimising the impact on revenue. Demand and revenue growth have been mixed across different markets. Demand from engineering construction for basic metal products, such as structural sections, has been particularly strong, reflecting investment in resource projects and associated infrastructure. Industry firms supplying other sectors, such as automotive manufacturers and the residential housing market, have generally fared less well.
Industry revenue is expected to decrease at an annualised 0.8% over the five years through 2015-16... purchase to read more
Industry Report - Starting a New Business Chapter
There are moderate barriers to entry for new firms into the Metal and Mineral Wholesaling industry. Key barriers to entry are the ability to raise substantial amounts of working capital, establishing key supply and demand industry contacts, and developing a reputation for timeliness and competitiveness. New industry companies that can achieve these targets are more likely to be successful over the long term.
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... purchase to read more