Hard bargain: Surging construction activity helps build industry revenue

The Hardware Wholesaling industry sells a range of building materials and hardware products, including bricks, tiles, metal architectural products, structural steel products, roofing products, plaster products, cement, power tools, hand tools, metal fasteners (e.g. nails and screws), glass and paint products. The industry contains many wholesalers that specialise in narrow product segments, such as plaster products and power tools.The industry supplies products to downstream retail stores and also sells hardware and building supplies directly to building contractors and independent tradespeople...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
6.4%
Forecast Growth 18-23
Profit
Employment
6,150
Businesses
1,060

Industry Threats & Opportunities

  • Robust growth in building construction has driven demand for hardware products and building supplies
  • Sales in the downstream retail industry have supported increased wholesaling activity
  • Declining demand from the residential building market is expected to limit the industry’s performance
  • Industry Report - Industry Investment Chapter

    The Hardware Wholesaling industry exhibits moderate capital intensity. In 2017-18, the industry is expected to allocate $4.55 on wage costs for every dollar invested in capital equipment. The larger industry players invest heavily in automated stock control and storage systems, and materials handling equipment. Most firms have bulk shelving systems, forklifts and hoists to cater for the storage and distribution of inventory.The industry’s labour requirement is moderate. Much of the labour input involves low-skilled tasks, such as operating forklifts, monitoring stock, processing orders and occasionally trimming products to length to meet customer specifications. The industry relies on staff maintaining a sound product knowledge to assist when dealing with customers...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

  • Ability to control stock on hand
  • Ability to effectively manage debtors
  • Having a good technical knowledge of the product
  • 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 in New Zealand Industry?

    Industry firms wholesale hardware products including building supplies and tools to retailers and construction companies. The wholesaling of plumbing goods and timber is not included in the industry.

    Industry Products
  • Hand and power tools
  • Bricks and tiles
  • Cement and other building materials
  • Doors, windows and roofing products
  • Paint and paint supplies
  • Wire, nails and building supplies
  • Plaster products
  • Other hardware 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
  • Garden tool and hand 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
  • Trade-weighted index

  • Current Performance
  • Demand drivers
  • Profitability and participation
  • Wholesale bypass
  • Chart: Revenue Growth

  • Industry Outlook
  • Deteriorating demand
  • Profitability
  • Continued wholesale bypass
  • 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
  • Construction in New Zealand
  • House Construction in New Zealand
  • Commercial and Industrial Building Construction in New Zealand
  • Hardware and Building Supplies Retailing in New Zealand

  • Key Selling Industries
  • Fabricated Metal Product Manufacturing in New Zealand
  • Paint and Coatings Manufacturing in New Zealand
  • Structural Metal Product Manufacturing in New Zealand

  • Products & Services
  • Hand and power tools
  • Bricks and tiles
  • Other hardware products
  • Cement and other building materials
  • Doors, windows and roofing products
  • Paint and paint supplies
  • Wire, nails and building supplies
  • Plaster products
  • Chart: Hardware Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential building companies and tradespeople
  • Hardware 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
  • Chart: Cost Structure Benchmarking – Sector vs Hardware Wholesaling

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

  • Industry Globalization
    Fletcher Building Limited, Carter Holt Harvey Building Products Pty Limited, Bunnings Limited,
  • Table: Fletcher Building Limited - financial performance
  • Table: Carter Holt Harvey Building Products Pty Limited - financial performance
  • Table: Bunnings 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
    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 represents home renovations undertaken by unskilled consumers (typically homeowners) rather than tradespeople.
  • Supply Chain
  • A system of organisations, people and resources involved in moving a product from a supplier to the consumer.
  • Wholesale Bypass
  • When retailers deal directly with manufacturers to source products and cut wholesalers out of the supply chain.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hardware Wholesaling in New Zealand 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 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 Wholesaling 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 Wholesaling 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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