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 - Starting a New Business Chapter
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 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... purchase to read more