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 - Industry Investment Chapter
The Metal and Mineral Wholesaling industry's capital intensity is low. 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 2015-16. Wages are used as a proxy for labour, and are expected to make up 4.6% of industry revenue in 2015-16. Therefore, for each $1.00 spent on labour inputs, an estimated $0.04 is invested in industry plant and equipment.
Although labour costs account for a small share of industry revenue, there is variation across the industry... purchase to read more