Poorly equipped: Reduced investment in mines and infrastructure projects drives down revenue

Operators in the Material Handling Equipment Distributors industry have faced turbulent demand conditions 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, the subsequent scaling back of investment with the weakening of commodity prices has contributed to a dramatic decline in the industry's performance. Industry revenue is expected to decline at an annualised 8.2% over the five years through 2016-17, 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 0.6% in 2016-17, to $7.7 billion...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 12-17
-8.2%
Forecast Growth 17-22
Profit
Employment
10,410
Businesses
1,129

Industry Threats & Opportunities

  • The winding back of investment in the Mining division has contributed to a slump in industry sales
  • Industry Report - Industry Products Chapter

    Operators in the Material Handling Equipment Distributors industry supply a range of handling equipment to downstream markets. Material handling equipment refers to the mechanical equipment used for the movement, storage, control and protection of materials throughout the entire distribution process, including manufacturing, distribution, consumption and disposal. Equipment can be separated into four general categories: storage and handling, engineered systems, industrial trucks, and bulk material handling.Storage and handling equipment is usually non-automated and often referred to as ‘catalogue' products due to their generally globally accepted standards. Engineered items, such as conveyors and handling robots, are typically custom-engineered automated products. Ind...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
  • Production of premium goods/services
  • Proximity to key suppliers
  • 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?

    The Material Handling Equipment Distributors industry distributes material handling equipment, usually on a wholesale basis. Products include conveying equipment, hoists, cranes, forklifts and industrial trucks.

    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 trends
  • Leasing arrangements
  • Profit and competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Profitability improves
  • 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
  • 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • 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?

    The Material Handling Equipment Distributors market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

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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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