Industry Analysis & Industry Trends
The Motor Vehicle Dismantling and Used Parts Wholesaling industry is small, contributing about 5.0% of revenue in the Motor Vehicle Wholesaling sector. Revenue volatility tends to be low as the need and demand for transportation across Australia remains steady. The economic crisis in 2008-09 slowed revenue growth over the next few years, finally leading to a decline of 1.7% in 2010-11, before rebounding to growth in the following year. IBISWorld expects industry revenue to drop again temporarily over 2012-13 by 1.0%, to $1.93 billion.
Used car wholesalers tend to be resilient against the major sales fluctuations experienced by car retailers... purchase to read more
Industry Report - Industry Investment Chapter
Capital labour intensity is an indicator of how much capital is used in production as opposed to labour. The Motor Vehicle Dismantling and Used Parts Wholesaling industry is mostly labour intensive, with wages accounting for a high proportion of both revenue (10.5%) and value added (61.4%). Expenditure on wages accounts for a larger proportion of revenue than capital, with a typical firm in the industry using about seven units of labour for each unit of capital.
It is common practice within the industry to lease or rent commercial property, thus part of the capital expenditure is reflected in the costs of leasing commercial property. These costs in total are relatively low, with depreciation only representing 1.5% of revenue... purchase to read more