Industry Analysis & Industry Trends
The Mining and Industrial Machinery Wholesaling industry enjoyed vigorous growth before and after the global financial crisis, underpinned by surging demand for mining machinery and equipment due to the global resources boom. Strong growth in freight volumes and investment in water infrastructure also stimulated demand for material-handling equipment and pumps. However, the terminal decline of the Australian Manufacturing division has constrained demand for machine tools and other machinery. Furthermore, the fall in commodity prices has cut back demand from mining companies over 2012-13. Overall, industry revenue is expected to increase at an annualised 8.4% over the five years through 2012-13 to reach $28.6 billion.
Industry revenue is estimated to grow by 8.1% in 2012-13... 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