Industry Analysis & Industry Trends
The Mining and Industrial Machinery Wholesaling industry acts as a conduit between manufacturers and final markets for machinery. Industry operators have ties with national and international manufacturers and can fill orders from a wide range of industries, if the demand for machinery is there. The industry's dependence on downstream demand is illustrated by volatility in revenue in the past five years, as the Mining division has played a growing role in industry performance. The industry benefited from surging demand for mining machinery and equipment in some years, but has faced periods of contraction as such capital expenditure was deferred. Overall, industry revenue is expected to decline at a compound annual rate of 4.1% in the five years through 2014-15... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entry into the industry are considered moderate. Obtaining distributing agreements from reputable suppliers that have a strong brand name in the market place is just one of the challenges faced by prospective wholesalers.
The established market presence and strength of existing major participants will also make it difficult for new companies to enter. Costs of establishing warehousing and distribution systems can be significant, and this will deter prospective players from becoming involved in the industry. Furthermore, costs are high for recruiting effective sales staff with sufficient experience with the equipment being wholesaled, as are the costs of financing a build-up of stocks... purchase to read more