Spanner in the works: Falling demand from mining has reduced industry revenue

Demand for the Material Handling Equipment Distributors industry has fluctuated over the past five years. Demand for machinery used in mine construction, mineral extraction and mineral handling such as bulk conveyor systems, draglines and skid-steer loaders has slumped following the unprecedented high of the mining investment boom in 2012-13. The industry has also encountered weak demand for earthmoving and lifting equipment in the infrastructure construction market, although growing demand from several building markets, notably high-rise apartment and commercial building construction projects, has partly offset declining demand from this market...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 14-19
-2.9%
Forecast Growth 19-24
Profit
Employment
11,200
Businesses
1,060

Industry Threats & Opportunities

  • Demand for machinery used in mine construction has declined alongside the mining boom
  • Industry revenue closely follows the trends in capital expenditure on machinery and equipment
  • Increasing capital expenditure on plant and equipment will eventually drive
  • Industry Report - Industry Investment Chapter

    The industry exhibits a moderate degree of capital intensity. The industry's ratio of labour costs to capital costs, using depreciation as a proxy, indicates that in 2018-19 industry operators are expected to allocate $6.94 on labour costs for every dollar spent on capital equipment. This is consistent with a moderate level of capital intensity.Industry operators typically require substantial areas of land and warehouse facilities to store stock for sale or hire to customers. Assembly and storage are important aspects of the business and represent a large portion of the industry's capital assets. Support structures and various assembling equipment are required in the industry's activities. Man...purchase to read more.

    Additional Insights for the Material Handling Equipment Distributors Industry

    IBISWorld has determined the most important Key Success Factors for the Material Handling Equipment Distributors 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
  • Key markets driving demand
  • 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
  • Manufacturing firms
  • Construction 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
  • 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 (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
    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.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
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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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