Nailing it: Industry revenue continues to build with rising DIY activity and competitive prices

The Hardware and Building Supplies Retailing industry has exhibited solid growth over the past five years. Strong demand for new homes and a rise in DIY home improvements have fuelled industry revenue growth. Retail sales of hardware and building supplies has also been spurred by positive consumer sentiment and declines in the cash rate, which bolstered real household discretionary income and increased the spending power of consumers. Industry revenue is expected to grow by an annualised 5.6% over the five years through 2017-18, to reach $7.1 billion. Softer growth in real household discretionary income will likely contribute to weaker revenue growth of 3.0% in 2017-18...read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 13-18
5.6%
Forecast Growth 18-23
Profit
Employment
20,256
Businesses
1,527

Industry Threats & Opportunities

  • Operators compete on price and scope of offerings to draw custom
  • Slowing construction demand and an increasing cash rate is likely to limit revenue growth
  • Industry Report - Industry Key Buyers Chapter

    The industry has a low level of market share concentration, with the four largest operators accounting for less than 30% of industry revenue. This figure understates the concentration of industry revenue across brands, as Mitre 10 and Plumbing World branded stores operate as a cooperative and are not considered as combined entities for the purposes of market share. If Mitre 10 and Plumbing World stores were to be considered as combined entities, market share concentration in the industry would be moderate, with the four largest players accounting for over 40% of industry revenue.Industry concentration has increased over the past five years. Strong growth in sales from Bunnings has increased the share of revenue controlled by larger operators. The...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

  • Ability to control stock on hand
  • Access to a highly skilled workforce
  • Market research and understanding
  • IBISWorld analysts also discuss how external factors such as Capital expenditure on residential buildings 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 in New Zealand Industry?

    Industry operators primarily retail hardware and building supplies such as tools, timber, paint, plumbing supplies and garden tools. These goods are purchased from wholesalers and sold directly to consumers and tradespeople in store or online. Operators that primarily retail garden supplies such as plants, seeds and soil are excluded from the industry, as are online-only players.

    Industry Products
  • Building supplies
  • Timber
  • Gardening tools
  • Paint and paint supplies
  • Plumbing supplies
  • Other hardware products
  • Tools and equipment
  • 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 residential buildings
  • Consumer sentiment index
  • Demand from house construction
  • Real household discretionary income
  • Number of households

  • Current Performance
  • Trading landscape
  • Competition and profit
  • Establishments and employment
  • Chart: Revenue Growth

  • Industry Outlook
  • Trading landscape
  • Competition and profit
  • Establishments and employment
  • 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 in New Zealand
  • Plumbing Services in New Zealand
  • Commercial and Industrial Building Construction in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Hardware Wholesaling in New Zealand
  • Paint and Coatings Manufacturing in New Zealand
  • Timber Wholesaling in New Zealand

  • Products & Services
  • Tools and equipment
  • Timber
  • Building supplies
  • Gardening tools
  • Plumbing supplies
  • Paint and paint 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
  • Tradespeople
  • DIY consumers aged 55 and over
  • 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
  • Internal
  • External

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

  • Industry Globalization
    Bunnings Limited, Fletcher Building Limited,
  • Table: Bunnings Limited - financial performance
  • Table: Fletcher Building 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Diy
  • Do-it-yourself renovations are those done by unskilled consumers rather than tradespeople.
  • Pure-Play Online Retailer
  • Retailers that operate online without a bricks-and-mortar store.
  • Wholesale Bypass
  • Wholesale bypass occurs when retailers source products directly from manufacturers or importers.
  • What Our Customers Say

    Why buy this report?

    The Hardware and Building Supplies Retailing in New Zealand market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 in New Zealand:
    • 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 in New Zealand 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 in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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