Industry Analysis & Industry Trends
The Mining and Industrial Machinery Wholesaling industry acts as a conduit between manufacturers and final markets for machinery. Demand for industry services depends on activity in its major markets. After a slow start as a result of the after-effects of the global financial crisis, demand for mining machinery and equipment has surged due to the global resources boom. Strong growth in freight volumes and investment in water infrastructure have also stimulated demand for material-handling equipment and pumps. Amid growing demand for industry products, the terminal decline of the Australian Manufacturing division has constrained demand for machine tools and other machinery. Overall, industry revenue is expected to increase at a compound annual rate of 9.3%... purchase to read more
Industry Report - Industry Investment Chapter
The industry spends an estimated $16.28 on labour for every $1.00 invested in new capital. There is a low level of capital tied up in plant and equipment in the Mining and Industrial Machinery Wholesaling industry. Capital is tied up in areas mainly limited to inventories and facilities that stock and move goods, such as warehouses, racking and delivery vehicles, although materials handling can be outsourced. As these costs are fixed, they decline as a share of industry revenue when the industry's sales increase.
Labour costs, by contrast, are variable. The industry employs labour to generate sales with major markets and maintain relationships with existing customers... purchase to read more