Industry Analysis & Industry Trends
Machine tool wholesalers generally purchase industry goods from manufacturers and onsell these to final customers. Most industry players are diverse wholesalers that specialise in a range of products, with machine tools comprising a single product segment. The industry is currently facing several challenges as it adapts to the shift in the economy from mining to more traditional manufacturing. In particular, there is a looming threat of wholesale bypass, where clients purchase their products directly from manufacturers. Some of the industry's more successful operators are expected to avoid price wars and instead focus on increasing their value proposition for clients.
Industry revenue is expected to decline at an annualised 0.5% over the five years through 2015-16 to reach $1.5... purchase to read more
Industry Report - Starting a New Business Chapter
The Machine Tool Wholesalers industry has medium barriers to entry. The industry operates with a low level of regulation, and the labour force skills required to be successful in the industry are relatively generic. The need to have good relationships with clients, the importance of brand affiliation, and capital requirements for entry form the main barriers for prospective new entrants to the industry. The industry's largest players generally have long-term relationships with their clients, often to the extent that they are in effect providing procurement support services. A strong and diverse client base allows operators to withstand demand shocks.
Brand affiliation is an important factor for companies operating in the industry... purchase to read more