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 - Starting a New Business Chapter
The barriers to entry into the industry are considered moderate. Obtaining distributing agreements from reputable suppliers who 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 good sales staff that have experience in the equipment being wholesaled, as are the costs of financing a build-up of stocks... purchase to read more