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 - Starting a New Business Chapter
The industry operates with a low level of regulation, and the labour force skills required to be successful in the industry are 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 entrants. The industry's largest players 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 important in the industry. The ability to establish a distribution relationship with recognised manufacturers is limited as many are already represented by wholesalers. The final key barrier to entry relates to capital... purchase to read more