Heavy load: Fluctuating demand from mining and construction markets reduces industry revenue

Operators in the Material Handling Equipment Distributors industry have contended with varied demand over the past five years, corresponding with the boom and bust of investment in resource developments. Mining investment surged to an unprecedented high in 2012-13. However, weakening commodity prices have reduced mining investment, contributing to a dramatic decline in industry revenue over the past five years. Revenue is expected to decline at an annualised 10.7% over the five years through 2017-18, largely due to the slump in equipment sales to the Mining division and for use in infrastructure construction projects. Industry revenue is anticipated to contract by 1.4% in 2017-18, to $7.5...read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 13-18
-10.7%
Forecast Growth 18-23
Profit
Employment
9,950
Businesses
1,050

Industry Threats & Opportunities

  • The industry is forecast to return to subdued cyclical growth over the next five years
  • Industry revenue closely follows the level of capital expenditure on machinery and equipment
  • Larger industry firms have focused on rationalising plant and equipment since the mining boom’s peak
  • Industry Report - Industry Key Buyers Chapter

    The Material Handling Equipment Distributors industry is considered to have a low market share concentration. The top four firms are expected to account for approximately 25.9% of industry revenue in 2017-18. Industry concentration is anticipated to have fallen over the past five years, reflecting the winding back of sales to the mining and infrastructure markets where the larger players are most dominant. The share of industry revenue generated by the four largest players is estimated to have contracted from a peak at 38.3% in 2012-13.WesTrac's market share surged on the back of the resources boom to peak at an estimated 20.4% in 2012-13, but this has since dropped to about 7.6% o...purchase to read more.

    Additional Insights for the Material Handling Equipment Distributors Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Material Handling Equipment Distributors Industry are

  • Having a diverse range of clients
  • Proximity to key suppliers
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Demand from mining and Private capital expenditure on machinery and equipment in the Material Handling Equipment Distributors industry impact industry performance..

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    What's in this report

    What is the Material Handling Equipment Distributors Industry?

    Industry operators sell material handling equipment, such as conveying equipment, hoists, cranes, forklifts and industrial trucks usually on a wholesale basis.

    Industry Products
  • Conveyors
  • Industrial trucks
  • Hoists and cranes
  • Loading platforms
  • Storage and handling equipment
  • Other equipment
  • Industry Activities
  • Conveyor system distributing and wholesaling
  • Forklift and industrial truck distributing and wholesaling
  • Loader distributing and wholesaling
  • Loading platform distributing and wholesaling
  • Hoists and crane distributing and wholesaling
  • Storage equipment distributing and wholesaling
  • Other material handling equipment distributing and 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 mining
  • Private capital expenditure on machinery and equipment
  • Demand from construction
  • Demand from agriculture, forestry and fishing
  • Demand from general warehousing and cold storage

  • Current Performance
  • Buying industries
  • Capital expenditure
  • Leasing arrangements
  • Profit and competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit
  • Buying industries
  • Capital expenditure
  • Leasing arrangements
  • Table: Material Handling Equipment Distributors Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Material Handling Equipment Distributors Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry and Fishing
  • Mining
  • Manufacturing
  • Construction
  • General Warehousing and Cold Storage

  • Key Selling Industries
  • Conveyor and Crane Manufacturing
  • General Warehousing and Cold Storage
  • Road Freight Transport

  • Products & Services
  • Conveyors
  • Hoists and cranes
  • Industrial trucks
  • Loading platforms
  • Other equipment
  • Storage and handling equipment
  • Chart: Material Handling Equipment Distributors Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Mining firms
  • Construction firms
  • Manufacturing firms
  • Transport and warehousing firms
  • Agriculture and forestry industries
  • Other industries
  • Chart: Major Market Segmentation for the Material Handling Equipment Distributors Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Transport and distribution
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Material Handling Equipment Distributors

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Material Handling Equipment Distributors Industry

  • Industry Globalization
    Sime Darby Industrial Australia Pty Ltd, Seven Group Holdings Limited, Komatsu Marketing Support Australia Pty Ltd,
  • Table: Sime Darby Industrial Australia Pty Ltd - financial performance
  • Table: Seven Group Holdings Limited - financial performance
  • Table: Komatsu Marketing Support Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Material Handling Equipment Distributors 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 Material Handling Equipment Distributors 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
    Conveyor
  • A pulley system that consists of two or more rotating elements that are typically looped in a belt.
  • Hoist
  • A pulley system that uses cables to move materials, typically along the vertical axis.
  • Pallet
  • A structural construction usually made out of wood planks used to support goods during lifting or moving.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Material Handling Equipment Distributors 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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    • Find out about key industry trends
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    This report on Material Handling Equipment Distributors:
    • 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 Material Handling Equipment Distributors 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 Material Handling Equipment Distributors, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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