Industry Analysis & Industry Trends
Machine tool wholesalers purchase goods from manufacturers and onsell them to clients. Most of the industry players are diverse wholesalers that specialise in a wide range of products, with machine tools comprising just one of the product segments. Industry revenue is expected to decline at an annualised 0.6% over the five years through 2014-15 to reach $1.6 billion. Over the past five years, this decline has been slightly offset by the manufacturing industries with exposure to the mining sector. Clients in other manufacturing industries are likely to have contributed significantly less to demand over the same period. The Machine Tool Wholesalers industry is therefore demonstrative of a two-speed economy... purchase to read more
Industry Report - Industry Investment Chapter
The Machine Tool Wholesalers industry has a low level of capital intensity. This means that for every dollar spent on capital, a further $10.98 is spent on labour. Wholesale businesses generally tend to have low levels of capital. Their warehouses are usually leased and so is most of the equipment such as forklifts. In contrast, the labour workforce is used extensively for the management of operations, development of new client relationships and sales.
Capital intensity is expected to increase over the five years through 2019-20. This is expected to be driven by an increasing use of technology to manage inventory, logistics and creditors... purchase to read more