Hardware Wholesaling in Australia Industry Market Research Report Now Updated by IBISWorld

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Weaker activity in non-residential building construction markets has restricted the industry's performance over the past five years. For this reason, industry research firm IBISWorld has updated its report on Hardware Wholesaling industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Intense retail-level competition and rising wholesale bypass will restrict revenue growth.

Operators in the Hardware Wholesaling industry in Australia sell a range of products, including power tools, metal fasteners, cement and paint. Industry wholesalers also sell some building products, such as roofing materials, bricks, tiles, doors, windows, sand, paint, plaster, locks, wire netting and fibreglass swimming pools. According to IBISWorld industry analyst Spencer Little, “Demand for these products has been subdued over the past five years due to weaker demand from residential building construction markets.” Weaker activity in non-residential building construction markets has also restricted the industry's performance over this period.

Wholesalers initially benefited from accelerated expansion in institutional building markets, associated with the Federal Government's primary school refurbishment program. However, subdued demand from commercial and industrial building construction markets has offset these benefits and further contained industry revenue. As a result, revenue is estimated to increase at an annualised 1.2% over the five years through 2014-15. Growth is expected to pick up in 2014-15, with revenue forecast to rise by 3.9%, to reach $15.4 billion. “This projected increase is due to greater demand for hardware products from residential construction markets and DIY homeowners,” says Little. The industry is composed of many small-scale firms that operate in narrow regional markets, which are typically part of a larger franchise or buying group. There has been some consolidation of industry ownership over the past five years, but the largest players still account for a fairly small share of total industry revenue. The industry exhibits a low level of market share concentration. Major players include Wesfarmers Limited.

Over the next five years, the Hardware Wholesaling industry's performance is expected to remain sluggish. Modest recovery in residential housing and non-residential construction markets is set to boost demand for many hardware products and other building supplies. However, as competition intensifies at the retail level and instances of wholesale bypass rise, revenue growth is likely to be restricted. The 2011 entry of Masters Home Improvement, a joint venture between Woolworths and US retailer Lowe's, is set to result in strong price-based competition.

For more information, visit IBISWorld’s Hardware Wholesaling industry in Australia report page.

Companies in the industry primarily wholesale a large range of hardware products including building supplies, tools, doors, and windows. The industry excludes firms that wholesale timber and plumbing products.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

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.

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Gavin Smith
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