Industry Analysis & Industry Trends
The Mining and Industrial Machinery Wholesaling industry acts as a link between manufacturers and final markets for a wide range of machinery and equipment. Industry operators have ties with national and international manufacturers and can fill orders for a wide range of industries. The industry's dependence on downstream demand has led to revenue volatility over the past five years, as the Mining division has played a growing role in industry performance. Although the industry benefited from surging demand for mining machinery and equipment until 2012-13, it has faced a significant contraction in demand since 2013-14 as mining capital expenditure slumped. Overall, industry revenue is expected to decline at a compound annual rate of 5.3% in the five years through 2015-16... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a low capital intensity level. Capital investment in the Mining and Industrial Machinery Wholesaling industry is tied up in facilities that stock and move goods, such as warehouses, racking and delivery vehicles. 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. In addition to selling activities, highly trained engineers customise equipment and design systems to meet client needs.
To calculate the capital intensity level, IBISWorld uses data from the industry cost structure... purchase to read more