Upswing of investment into housing and commercial markets lifts industry
Melbourne, Australia (PRWEB) June 02, 2013
The Plumbing Goods Wholesaling industry is expected to return to growth over 2012-13 on the back of stronger housing and commercial construction. For this reason, industry research firm IBISWorld has updated its report on the Plumbing Goods Wholesaling industry in Australia.
The Plumbing Goods Wholesaling industry sells bathroom and toilet fittings, hot water systems, gas pipes and fittings, taps, downpipes and plumbing tools. Wholesalers compete in the supply of these goods with manufacturers and retailers engaging in wholesale bypass.
The industry is forecast to generate revenue of $4.6 billion in 2012-13, up 2.2% on 2011-12 due to an upswing of investment into the housing and commercial markets. However, revenue is expected to decline by an annualised 0.5% over the five years through 2012-13. According to IBISWorld industry analyst Anthony Kelly, “the industry has failed to match the pace of expansion in the economy over the five years due to adverse trends in key building markets and the loss of market share due to wholesale bypass”. Industry value added is about $965.0 million, or 0.1% of Australia's GDP.
The Plumbing Goods Wholesaling industry derives 70.0% of its revenue from the sale of plumbing supplies to the residential building market, which is expected to average flat growth over the five years through 2012-13. Wholesalers derived some stimulus from accelerated expansion in the institutional building market associated with the primary school refurbishment program, Building the Education Revolution, but this was outweighed by a sharp contraction of investment into the commercial and industrial building markets.
In 2012-13, industry employment is expected to total 8,500 people in 800 establishments, operated by 425 companies. The industry comprises several larger franchise and buying groups. There has been some consolidation of ownership in the past two decades. The industry has a medium concentration of ownership. The industry’s three largest firms are Reece Australia Limited, Fletcher Building Limited and Wesfarmers Limited.
“The industry's performance is forecast to strengthen moderately with the synchronised upswing of total building investment”, says Kelly. Stronger housing and commercial construction is forecast to push revenue up over the next five years.
For more information, visit IBISWorld’s Plumbing Goods Wholesaling report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry wholesale a wide variety of plumbing supplies, including bathroom and kitchen fixtures and fittings, hot water systems, downpipes and guttering, and plumbing tools.
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
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.