Farm, Lawn and Garden Equipment Wholesaling in the US Industry Market Research Report from IBISWorld has Been Updated

Share Article

Opposing factors have taken the Farm, Lawn and Garden Equipment Wholesaling industry for a spin during the past five years; while revenue declines have moderated since 2009, the industry continues to face significant pressures. For these reasons, industry research firm IBISWorld has updated a report on the Farm, Lawn and Garden Equipment Wholesaling industry in its growing industry report collection.

News Image
Demand from farmers and homeowners will rebound

Opposing factors have taken the Farm, Lawn and Garden Equipment Wholesaling industry for a spin during the past five years. After the housing bubble burst in late 2008 and the recession took hold, wholesalers were left with steeply declining revenue in 2009. According to IBISWorld Industry analyst Sally Lerman, “while revenue declines have since moderated, the industry continues to face significant pressures.” During the five years to 2013, revenue is anticipated to decrease at an annualized rate of 1.9% to $63.0 billion. This rate includes an expected 1.8% drop in 2013 as the increasing prevalence of wholesale bypass (i.e. when buyers source directly from manufacturers to cut costs) offsets stronger demand from the farming sector.

The industry is forecast to recover slowly but steadily through 2018. Demand from the farming sector will remain stable and demand from homeowners will rebound as credit conditions loosen, unemployment declines and home purchases increase. Private spending on home improvement is projected to grow at an average rate of 4.6% per year during the next five years, which indicates increased demand for lawn and garden equipment. Meanwhile, increased ethanol use, as mandated by quotas set in the 2005 Energy Policy Act and 2007 Energy Independence and Security Act, will fuel demand for capital investments in the farming sector. As such, revenue is anticipated to grow over the five years to 2018.

The Farm, Lawn and Garden Equipment Wholesaling industry has a medium level of market share concentration. During the past five years, the top two companies have increased their market power as their respective sales have grown faster than the industry's revenue. Brand recognition, far-reaching global operations and a diverse set of product offerings have bolstered growth and mitigated the negative effects of the economic recession. Smaller companies, on the other hand, do not have the same support system. As a result, many unprofitable players have exited this industry. Concentration also varies by type of wholesaler. Concentration among merchant wholesalers is low, while concentration among manufacturers' sales branches and offices is very high. Large, vertically integrated firms have consistently gained market share over the past five years. The two largest companies in the industry are Deere & Company, and CNH Industrial.

For more information, visit IBISWorld’s Farm, Lawn and Garden Equipment Wholesaling in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld

Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

Farm, lawn and garden equipment wholesalers in this industry primarily purchase specialized machinery, equipment and related parts used in agricultural and consumer segment activities (e.g. lawn and garden). This equipment is then sold to downstream markets, namely farms and other wholesalers, that make the goods available to end consumers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized 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 US 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
IBISWorld
310 866 5042
Email >
Visit website