Tools down: Weak demand from downstream markets has led to revenue declines

Operators in the Machine Tool Wholesalers industry generally purchase industry goods from manufacturers and onsell these to other businesses and final customers. Most industry players are diverse wholesalers that offer a range of products, with machine tools making up a single product segment. The industry has declined as several key markets, particularly manufacturing and mining, have weakened over the past five years. The ongoing threat of wholesale bypass, where clients purchase their products directly from manufacturers or import directly, has also had a negative effect on the industry. However, some of the industry's more successful operators are expected to maintain market share and avoid price wars by focusing on their branding and increasing their value proposition for more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry has declined over the past five years as several key markets have weakened
  • Rising wholesale bypass trends have limited the benefits of greater retail demand
  • Demand from the manufacturing, construction and mining sectors is forecast to increase
  • Industry Report - Industry Key Buyers Chapter

    The industry is highly fragmented and has low market share concentration. In 2018-19, the four largest industry firms are estimated to account for less than 10% of industry revenue. An industry is considered to have a low concentration if the four largest firms have a market share of less than 40% of industry revenue. This low industry concentration characterised the industry over the past five years, and is projected to continue over the five years through 2023-24.Although several large companies are active in the industry, industry-related sales only account for a small proportion of total revenue for these firms. Smaller machine tool manufacturers are also active in the industry to boost the reach of their distribution networks. Alt...purchase to read more.

    Additional Insights for the Machine Tool Wholesalers Industry

    IBISWorld has determined the most important Key Success Factors for the Machine Tool Wholesalers are:

  • Having a loyal customer base
  • Ability to control stock on hand
  • Prompt delivery to market
  • IBISWorld analysts also discuss how external factors such as Private capital expenditure on machinery and equipment and Demand from manufacturing in the Machine Tool Wholesalers industry impact industry performance..

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    What's in this report

    What is the Machine Tool Wholesalers Industry?

    Firms operating in the industry wholesale a range of machine tools. Products include powered metalworking and woodworking machinery and tools, such as lathes, bores, drills, grinders, buffers, chamfers and polishers. Some firms in the industry are vertically integrated, from production through to distribution.

    Industry Products
  • Machine tools for working wood and related materials
  • Machine tools for working metal and related materials
  • Machine tools for working other materials
  • Parts and accessories for machine tools
  • Industry Activities
  • Wholesaling metal-cutting tools
  • Wholesaling metal-forming tools
  • Wholesaling woodworking tools
  • Wholesaling other material-cutting or -forming tools
  • Wholesaling joining tools
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Private capital expenditure on machinery and equipment
  • Demand from manufacturing
  • Trade-weighted index
  • Demand from construction
  • Demand from machinery and scaffolding rental

  • Current Performance
  • Downstream industries
  • Profit and other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream markets
  • Wholesale bypass
  • Changing focus
  • Table: Machine Tool Wholesalers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Machine Tool Wholesalers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry and Fishing
  • Mining
  • Manufacturing
  • Construction

  • Key Selling Industries
  • Customs Agency Services
  • General Warehousing and Cold Storage
  • Machine Tool and Parts Manufacturing
  • Road Freight Transport
  • Telecommunications Services

  • Products & Services
  • Machine tools for working wood and related materials
  • Machine tools for working metal and related materials
  • Machine tools for working other materials
  • Parts and accessories for machine tools
  • Chart: Machine Tool Wholesalers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retailers
  • Manufacturing industries
  • Construction industries
  • Mining industries
  • Chart: Major Market Segmentation for the Machine Tool Wholesalers 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 Machine Tool Wholesalers

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Machine Tool Wholesalers Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Machine Tool Wholesalers 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 Machine Tool Wholesalers 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
    Machine Tool
  • A tool used to shape, form, cut or join materials.
  • Vertical Integration
  • Vertical integration occurs when a company operates across different levels of the supply chain, for example, both manufacturing and distributing products.
  • Wholesale Bypass
  • Wholesale bypass occurs when retailers source products directly from manufacturers or primary producers, cutting out intermediate levels of the supply chain.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Machine Tool Wholesalers 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.

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    This report on Machine Tool Wholesalers:
    • 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 Machine Tool Wholesalers 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 Machine Tool Wholesalers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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