Down the gutter: Wholesale bypass has drained industry revenue despite increased demand

The Plumbing Goods Wholesaling industry has reported lacklustre growth over the past five years. Companies in the industry sell bathroom fixtures and fittings, hot water systems, gas pipes and fittings, downpipes, guttering and plumbing tools. Subdued demand from the construction sector has hampered the industry's performance over the past five years. Weak demand for replacement and repair parts from plumbing services providers has also exacerbated the industry's performance over the period. A decline in construction activity in 2018-19 is expected to drive a 1.2% drop in revenue in the current year.Demand from downstream construction markets has fluctuated over the past five years, constraining industry revenue growth over the more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Subdued growth in building construction has restricted the industry’s performance
  • Increasing wholesale bypass has affected industry operators over the past five years
  • A forecast increase in demand from non-residential building construction will support growth
  • Industry Report - Industry Key Buyers Chapter

    The Plumbing Goods Wholesaling industry exhibits moderate market share concentration. In 2018-19, the four largest players are projected to account for over 50% of total revenue. The industry is defined by strong price competition, low to medium profit margins on products and moderate barriers to entry. The majority of industry firms are smaller wholesalers that employ less than 20 people. However, larger industry firms have consolidated over the past five years, to improve purchasing power, streamline operations and compete against wholesale bypass activities. As a result, market share concentration has risen over the period...purchase to read more.

    Additional Insights for the Plumbing Goods Wholesaling Industry

    IBISWorld has determined the most important Key Success Factors for the Plumbing Goods Wholesaling are:

  • Ability to control stock on hand
  • Easy access for clients
  • Having a good technical knowledge of the product
  • IBISWorld analysts also discuss how external factors such as Demand from plumbing services and Demand from residential building construction in the Plumbing Goods Wholesaling industry impact industry performance..

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    What's in this report

    What is the Plumbing Goods Wholesaling Industry?

    The industry primarily wholesales a range of plumbing goods. These products include baths, basins, toilets, showers, sinks, taps, hot water systems, downpipes, guttering and fittings.

    Industry Products
  • Bathroom, kitchen and laundry fixtures
  • Pipes and tubes
  • Fittings and valves
  • Metal guttering
  • Other products
  • Industry Activities
  • Bath wholesaling
  • Bathroom and toilet fitting wholesaling
  • Downpipe and guttering wholesaling
  • Gas fitting wholesaling
  • Hot water system wholesaling
  • Pipe and pipe fitting wholesaling
  • Plumbing tool wholesaling
  • Sink and basin wholesaling
  • Toilet 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 plumbing services
  • Demand from residential building construction
  • Real household discretionary income
  • Capital expenditure on private dwellings
  • Demand from commercial and industrial building construction

  • Current Performance
  • Revenue and profitability
  • Construction trends
  • Wholesale bypass

    and competition

  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Construction trends
  • Wholesale bypass

    and competition

  • Table: Plumbing Goods Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • House Construction
  • Roofing Services
  • Plumbing Services
  • Commercial and Industrial Building Construction

  • Key Selling Industries
  • Ceramic Product Manufacturing
  • Fabricated Metal Product Manufacturing
  • Heating, Cooling and Ventilation Equipment Manufacturing
  • Plastic Flooring and Other Polymer Product Manufacturing
  • Sheet Metal Product Manufacturing

  • Products & Services
  • Bathroom, kitchen and laundry fixtures
  • Pipes and tubes
  • Fittings and valves
  • Other products
  • Metal guttering
  • Chart: Plumbing Goods Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential construction contractors
  • Retailers
  • Commercial and industrial building contractors
  • Institutional building contractors
  • Chart: Major Market Segmentation for the Plumbing Goods Wholesaling 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 Plumbing Goods Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Plumbing Goods Wholesaling Industry

  • Industry Globalization
    Reece Limited, Fletcher Building Limited, Wesfarmers Limited,
  • Table: Reece Limited - financial performance
  • Table: Fletcher Building Limited - financial performance
  • Table: Wesfarmers Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Plumbing Goods 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 Plumbing Goods Wholesaling Industry
  • 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
  • Do-it-yourself. Consumers that undertake hardware and home improvement projects without the aid of professionals.
  • Occupational Health And Safety (Oh&S)
  • Laws that ensure workplaces are safe for employees and other visitors.
  • Wholesale Bypass
  • When manufacturers supply goods directly to stores, eliminating wholesalers from the supply chain.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Plumbing Goods Wholesaling market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Plumbing Goods 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 Plumbing Goods 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 Plumbing Goods Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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