Industry revenue growth flows from increasing business numbers and outsourcing trends
Melbourne, Australia (PRWEB) August 28, 2012
The Cleaning & Maintenance Supplies Distributors industry in Australia has experienced some clean and dirty patches over the past five years. An increase in the number of Australian businesses meant the need for cleaning and maintenance supplies grew. Meanwhile, households, businesses and governments increasingly outsourced their cleaning activities. The outsourcing increased downstream demand from cleaning service providers, which contributed to revenue growth over the past five years. According to IBISWorld industry analyst Aries Nuguid, “Industry revenue is forecast to increase an annualised 2.2% over the five years through 2012-13 to reach $975.8 million.”
High commodity prices, particularly those for oil, increased the industry's purchase costs of cleaning and maintenance products that used plastic and petrochemicals. “While industry revenue increased as operators increased prices, the price adjustments were necessary as operators attempted to buttress their falling profit margins as purchase costs expanded,” added Nuguid. The Cleaning & Maintenance Supplies Distributors industry in Australia has a low level of market share concentration, the only major player being Bunzl Australia. It is the diverse array of products sold through the industry that seems to account for the large number of small operators.
The industry is expected to undergo similar conditions over the next five years. The number of businesses in Australia will continue to grow, which will increase the need for cleaning and maintenance supplies. The outsourcing trend will also continue as the population ages and as businesses and governments focus on their core activities. The high purchase costs and increased competition from distributors with online platforms is expected to diminish industry profit margins over the next five years. For more information, visit IBISWorld’s Cleaning & Maintenance Supplies Distributors in Australia report industry page.
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IBISWorld industry Report Key Topics
This industry distributes specialised equipment and supplies for cleaning and maintenance services on a merchant wholesale basis. Products include janitorial and chemical cleaning solutions, waste receptacles and facility maintenance.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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