Recovery in construction markets leads to higher industry demand
Melbourne, Australia (PRWEB) June 04, 2013
Hardware retailers have faced ups and downs over the past decade, reflecting the cyclical fluctuations in key economic variables (household income and consumption expenditure) and trends in home renovation.
The Hardware and Building Supplies Retailing industry is expected to grow by 3.5% over 2012-13 to $23.8 billion, stemming from improved spending on house renovation and buoyant growth in household construction. Over the five years through 2012-13, industry revenue is projected to display subdued growth by an annualised 1.0%, lagging well behind the projected growth in Australia's GDP (2.4%). According to IBISWorld industry analyst Anthony Kelly, “this reflects the impact of the global financial crisis in the late 2000s and scaling back of household spending on home renovations and alterations.” Despite the subdued growth, the industry has captured a greater share of the total building supplies market through wholesale bypass, by sourcing products direct from manufacturers and importers and encouraging trade customers to deal directly with retailers.
The Hardware and Building Supplies Retailing industry is characterised by many small-scale stores, which contest for a share of a narrow market. The industry comprises about 5,900 enterprises operating from 10,000 locations and employing 117,500 people. The industry’s three largest players are Wesfarmers Limited, Woolworths Ltd and Metcash Limited.
“The industry is forecast to record solid growth over the next five years, reflecting the stronger demand conditions in the household renovation market and buoyant trends in household disposable income and consumption,” says Kelly. The size of the industry should grow steadily as Bunnings spreads its network and Masters attracts customers from other specialist hardware industries.
For more information, visit IBISWorld’s Hardware and Building Supplies Retailing report in Australia industry page.
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IBISWorld industry Report Key Topics
Firms in the industry retail hardware and building supplies to households, tradespeople and businesses. These retailers stock a range of goods including hardware, timber, tools and equipment, paint, plumbing supplies and garden tools. The industry excludes garden supplies such as plants, seeds and soil.
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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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.