Industry Analysis & Industry Trends
Machine tool wholesalers purchase goods from manufacturers then onsell them to clients. Most of the players in the industry are diverse wholesalers that specialise in a wide range of products, with machine tools comprising just one of their product segments. Industry revenue is forecast to grow at annualised 3.6% over the five years through 2013-14 to reach $3.06 billion. This growth is expected to be supported by strong demand from 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. In this sense, the Machine Tool Wholesalers industry is 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, with a capital to labour ratio of 9.6%. This means that for every dollar spent on capital, a further $10.50 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 2013-14. This is expected to be driven by an increasing use of technology to manage inventory, logistics and creditors... purchase to read more