Nailed it: Industry revenue builds as capital expenditure on private dwellings increases

The Hardware and Building Supplies Retailing industry has grown moderately over the past five years. Industry revenue is expected to increase at an annualised 2.7% over the five years through 2018-19, to reach $21.6 billion. This includes anticipated growth of 0.1% in the current year. Structural changes have had a significant effect on the industry. These changes have included Woolworths entering and exiting the industry as a major player, and Bunnings and Mitre 10 rolling out new big-box stores. Competition among the major players has involved promoting hardware and building supplies, and encouraging DIY home improvement projects...read more.

Industry Statistics & Market Size
Revenue
$22bn
Annual Growth 14-19
2.7%
Forecast Growth 19-24
Profit
Employment
71,155
Businesses
5,240
Market Share of Companies

Industry Threats & Opportunities

  • Households undertaking DIY home improvement renovations and repairs have benefited the industry
  • Profitability has declined over the past five years due to rising price competition over the period
  • Forecast slower growth in capital expenditure on private dwellings will limit increases in revenue
  • Industry Report - Industry Products Chapter

    Retail stores such as Bunnings, Home Timber & Hardware and Mitre 10 stock a range of tools, hardware and building supplies. The main products that hardware retailers supply include hand tools, power tools, timber, building supplies, gardening tools, paint, paint supplies and plumbing supplies. Gardening supplies such as plants, seeds and soil are excluded from the industry.Tools and equipmentThe tools and equipment segment includes a range of hand and power tools that consumers, builders and tradespeople use. Common hand tools include hammers, screwdrivers, spanners, saws, allen keys and socket sets. Power tools include drills, sanders, grinders, power saws, and welding, soldering and joining tools. Thi...purchase to read more.

    Additional Insights for the Hardware and Building Supplies Retailing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hardware and Building Supplies Retailing Industry are

  • Economies of scale
  • Ability to control stock on hand
  • Production of goods currently favoured by the market
  • IBISWorld analysts also discuss how external factors such as Capital expenditure on private dwellings and Consumer sentiment index in the Hardware and Building Supplies Retailing industry impact industry performance..

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    What's in this report

    What is the Hardware and Building Supplies Retailing Industry?

    Industry operators retail hardware and building supplies to households and tradespeople. These retailers stock a range of goods including hardware, timber, tools, paint, plumbing supplies and garden tools. The industry excludes companies that primarily retail garden supplies such as plants, seeds and soil.

    Industry Products
  • Tools and equipment
  • Timber
  • Building supplies
  • Gardening tools
  • Paint and paint supplies
  • Plumbing supplies
  • Other hardware products
  • Industry Activities
  • Hardware retailing
  • Tool and equipment retailing
  • Plumbing fixture and fitting retailing
  • Paint retailing
  • Garden tool retailing
  • Timber retailing
  • Cement retailing
  • Wallpaper retailing
  • Carpenter and woodworker tool retailing
  • Ceramic floor tile retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Capital expenditure on private dwellings
  • Consumer sentiment index
  • Demand from house construction
  • Number of households
  • Real household discretionary income

  • Current Performance
  • Profitability
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Profitability
  • Industry structure
  • Future trends
  • Table: Hardware and Building Supplies Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hardware and Building Supplies Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • House Construction
  • Commercial and Industrial Building Construction
  • Consumers

  • Key Selling Industries
  • Hardware Wholesaling
  • Machine Tool and Parts Manufacturing
  • Nut, Bolt, Screw and Rivet Manufacturing
  • Tool and Hardware Manufacturing

  • Products & Services
  • Tools and equipment
  • Timber
  • Building supplies
  • Gardening tools
  • Paint and paint supplies
  • Plumbing supplies
  • Other hardware products
  • Chart: Hardware and Building Supplies Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • DIY consumers aged 35 to 54
  • DIY consumers aged 55 and over
  • Tradespeople
  • DIY consumers aged 15 to 34
  • Chart: Major Market Segmentation for the Hardware and Building Supplies Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Hardware and Building Supplies Retailing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hardware and Building Supplies Retailing Industry

  • Industry Globalization
    Wesfarmers Limited,
  • Table: Wesfarmers Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hardware and Building Supplies Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hardware and Building Supplies Retailing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Big-Box Stores
  • Warehouse-style retail outlets that are differentiated by their sheer size. This is a popular retailing concept and has been adopted by Bunnings.
  • Diy
  • Do-it-yourself renovations and repair work undertaken by unskilled consumers rather than skilled tradespeople.
  • Point Of Sale (Pos)
  • Technology that incorporates a cash register with a credit and debit card electronic payment system in the one device.
  • Wholesale Bypass
  • Wholesale bypass occurs when retailers source products directly from manufacturers or importers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hardware and Building Supplies Retailing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hardware and Building Supplies Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hardware and Building Supplies Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hardware and Building Supplies Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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