Hard sell: Increasing wholesale bypass has created strong competition for operators

Operators in the Hardware Wholesaling industry sell a range of building materials and hardware products, including bricks, tiles, power tools, glass and paint products. Some smaller industry players specialise in these narrow product segments. Other large firms, such as CARTERS, Bunnings and Fletcher Building, operate across several supply chain segments, including manufacturing, wholesaling and retailing.Industry operators supply products to downstream retail stores and also sell hardware and building supplies directly to building contractors and tradespeople. An investment surge in key building and infrastructure markets has driven industry revenue growth over the past five years...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 15-20
2.5%
Forecast Growth 20-25
Profit
Employment
6,879
Businesses
963

Industry Threats & Opportunities

  • Robust demand from the construction market has supported the industry over the past five years
  • Strong growth in industry sales is expected to support an increase in total employment
  • Declining demand from the residential building market will likely limit the industry’s revenue performance
  • Industry Report - Industry Analysis Chapter

    The Hardware Wholesaling industry has displayed strong revenue growth over the past five years, supported by the rapid expansion of New Zealand’s building and infrastructure markets. The increase in residential building activity over the five years through 2019-20 has been fuelled by pent-up demand, brought about by population growth and historically low mortgage interest rates. Strong household discretionary income growth over the period has also fuelled demand for hardware and building products for home renovations and repair, while favourable economic conditions have supported robust growth in capital expenditure on non-residential building and infrastructure construction. In ...purchase to read more.

    Additional Insights for the Hardware Wholesaling Industry

    IBISWorld has determined the most important Key Success Factors for the Hardware Wholesaling 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
  • Cement and other building materials
  • Doors, windows and roofing products
  • Paint and paint supplies
  • Wire, nails and building supplies
  • Tiles
  • Security, plaster 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
  • 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
  • residential construction capital expenditure
  • Real household discretionary income
  • Trade-weighted index

  • Current Performance
  • Demand drivers
  • Profitability and participation
  • 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
  • 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
  • Security, plaster and other products
  • Cement and other building materials
  • Bricks
  • Doors, windows and roofing products
  • Paint and paint supplies
  • Wire, nails and building supplies
  • Tiles
  • 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
  • Internal competition
  • External competition

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

  • Industry Globalization
    Fletcher Building Limited, Bunnings Limited, Carter Holt Harvey Building Products Pty Limited,
  • Table: Fletcher Building Limited - financial performance
  • Table: Bunnings Limited - financial performance
  • Table: Carter Holt Harvey Building Products Pty 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 (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • 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.
  • Pos
  • Point-of-sale usually refers to the technology that firms use to process credit cards, contactless or online transactions customers use when paying for products.
  • 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 can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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