Hard luck: Revenue is set to fall in 2016-17 due to declining construction activity

The Hardware Wholesaling industry has strengthened over the past five years due to increasing building construction activity. The industry sells a range of products, including power tools, metal fasteners, cement and paint. Industry wholesalers also sell some building products, such as roofing materials, bricks, tiles, doors, windows, sand and plaster. Demand for these products has varied across the industry's major markets over the past five years, which has tempered revenue volatility. Despite this, revenue is expected to fall by 2.5% in 2016-17 due to declining demand from residential building construction in the current year. Industry revenue is expected to grow by an annualised 3.6% over the five years through 2016-17, to reach $16.4 billion...read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies

Industry Threats & Opportunities

  • The industry has grown over the past five years due to increasing building construction activity
  • Greater multi-unit apartment construction has supported demand for a range of hardware products
  • A forecast increase in house construction will support demand for hardware supplies
  • Industry Report - Starting a New Business Chapter

    The industry is characterised by moderate barriers to entry, which have remained steady over the past five years. The industry has a low market share concentration, with the top four players accounting for approximately 24% of revenue. Despite this, the current players in the industry pose a barrier to new entrants in terms of the diversity of their locations and the range of products offered. Prospective operators may view this as a deterrent to entering the industry.The industry has a moderate level of capital intensity. The distribution of building materials requires large distribution facilities and the significant capital costs associated with establishing these facilities may deter some firms from entering the industry. Est...purchase to read more.

    Additional Insights for the Hardware Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hardware Wholesaling Industry are

  • Having a good technical knowledge of the product
  • Having a diverse range of clients
  • Ability to effectively manage debtors
  • IBISWorld analysts also discuss how external factors such as Demand from hardware and building supplies retailing and Demand from residential building construction in the Hardware Wholesaling industry impact industry performance..

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    What's in this report

    What is the Hardware Wholesaling Industry?

    Industry firms primarily wholesale a range of hardware products including building supplies, tools, doors and windows. The industry does not include firms that wholesale timber and plumbing products.

    Industry Products
  • Bricks
  • Tiles
  • Cement, sand and plaster
  • Doors, windows and roofing products
  • Paint and paint supplies
  • Wire, nails and building supplies
  • Hand and power tools
  • Security and other products
  • Industry Activities
  • Abrasive wholesaling (except abrasive cleansers)
  • Awning and roller shutter wholesaling
  • Brick and ceramic tile wholesaling
  • Cement and plaster wholesaling
  • Door and window wholesaling
  • Hardware wholesaling
  • Paint, stain and wallpaper wholesaling
  • Fence post and wire wholesaling
  • Tool wholesaling
  • Insulating and roofing material wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from hardware and building supplies retailing
  • Demand from residential building construction
  • Demand from non-residential building construction
  • Real household discretionary income

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Intensifying competition
  • Table: Hardware Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hardware Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • House Construction
  • Concreting Services
  • Bricklaying Services
  • Roofing Services
  • Commercial and Industrial Building Construction
  • Hardware and Building Supplies Retailing

  • Key Selling Industries
  • Ceramic Product Manufacturing
  • Clay Brick Manufacturing
  • Nut, Bolt, Screw and Rivet Manufacturing
  • Paint and Coatings Manufacturing

  • Products & Services
  • Hand and power tools
  • Security and other products
  • Bricks
  • Cement, sand and plaster
  • Doors, windows and roofing products
  • Paint and paint supplies
  • Tiles
  • Wire, nails and building supplies
  • Chart: Hardware Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential building companies and tradespeople
  • Retailers
  • Non-residential building companies and tradespeople
  • Chart: Major Market Segmentation for the Hardware Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Hardware Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hardware Wholesaling Industry

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hardware Wholesaling 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 Wholesaling Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Do-It-Yourself. This market typically consists of home owners that purchase hardware products and complete their own renovations.
  • Fascia
  • An architectural band that runs horizontally and sits under a roof edge or forms the surface of a cornice.
  • 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 Wholesaling 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 Wholesaling:
    • 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 Wholesaling 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 Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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