Nailed it: Downstream construction activity has built up demand for hardware wholesalers

Revenue for the Hardware Wholesaling industry has grown over the past five years. The industry sells a range of products, including power tools, metal fasteners, cement and paint. Industry wholesalers also sell some building materials, such as roofing materials, bricks, tiles, doors, windows, sand and plaster. As a result, local construction activity strongly determines demand for industry products. Demand for these products has varied across the industry's major markets over the past five years, reducing revenue volatility. Industry revenue is expected to grow at an annualised 2.0% over the five years through 2018-19, to $17.3 more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Slow discretionary income growth has discouraged home improvement projects, reducing industry demand
  • Greater multi-unit apartment construction has supported demand for a range of hardware products
  • A forecast increase in house construction will support demand for hardware supplies
  • Industry Report - Industry Key Buyers Chapter

    The Hardware Wholesaling industry exhibits low market share concentration. The industry's four largest players are expected to account for less than 40.0% of total industry revenue in the current year. However, the largest players in the industry have grown their operations over the past five years. Woolworths completed the sale of its Home Timber and Hardware business to Metcash in October 2016. As a result, Metcash's presence in the market has expanded significantly, boosting market share concentration...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:

  • Having a good technical knowledge of the product
  • Having a diverse range of clients
  • Ability to effectively manage debtors
  • 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 Industry?

    Industry firms primarily wholesale a range of hardware products including building supplies, tools, doors and windows. The industry does not include firms that wholesale timber and plumbing products.

    Industry Products
  • Bricks
  • Tiles
  • Cement, sand and plaster
  • Doors, windows and roofing products
  • Paint and paint supplies
  • Wire, nails and building supplies
  • Hand and power tools
  • Security 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
  • 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
  • Demand from non-residential building construction
  • Real household discretionary income

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • 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
  • House Construction
  • Concreting Services
  • Bricklaying Services
  • Roofing Services
  • Commercial and Industrial Building Construction
  • Hardware and Building Supplies Retailing

  • Key Selling Industries
  • Ceramic Product Manufacturing
  • Clay Brick Manufacturing
  • Nut, Bolt, Screw and Rivet Manufacturing
  • Paint and Coatings Manufacturing

  • Products & Services
  • Hand and power tools
  • Security and other products
  • Cement, sand and plaster
  • Bricks
  • Doors, windows and roofing products
  • Tiles
  • Paint and paint supplies
  • Wire, nails and building supplies
  • Chart: Hardware Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential building companies and tradespeople
  • Non-residential building companies and tradespeople
  • Retailers
  • 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
  • Profit
  • Wages
  • Purchases
  • Other Costs
  • 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
    Wesfarmers Limited, Metcash Limited,
  • Table: Wesfarmers Limited - financial performance
  • Table: Metcash 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
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Do-It-Yourself. This market typically consists of home owners that purchase hardware products and complete their own renovations.
  • Fascia
  • An architectural band that runs horizontally and sits under a roof edge or forms the surface of a cornice.
  • Wholesale Bypass
  • Wholesale bypass occurs when retailers source products directly from manufacturers or importers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hardware Wholesaling 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
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    This report on Hardware Wholesaling:
    • 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 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, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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