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, have fared less well.
Industry revenue is estimated to increase at an annualised 3.0% over the five years through 2013-14, driven by the strength of the mining investment boom and high foreign demand. However, 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 medium level. Capital investment is required for materials handling equipment, computerised stock control systems, warehousing and stock. To calculate the capital intensity level, IBISWorld uses data from the industry cost structure. Depreciation is used as a proxy for capital expenditure, with such expenses estimated to account for 0.5% of industry revenue in 2013-14. Wages are used as a proxy for labour, which are estimated to account for 3.5% of industry revenue for the year. Therefore, for each $1.00 invested in industry plant and equipment, approximately $6.96 is required for labour inputs.
Labour costs absorb only a small share of revenue, although there is variation across the industry... purchase to read more