Industrial Machinery & Equipment Wholesaling in the US Industry Market Research Report from IBISWorld has Been Updated
Los Angeles, California (PRWEB) August 03, 2013 -- The Industrial Machinery and Equipment Wholesaling industry distributes a variety of products for different industries, including: drilling, refining and pipeline products for the oil and natural gas sector; hoists and forklifts for the material handling sector; and diesel engines, pumps and metalworking machinery for the manufacturing sector. Despite this diversity, success in the Industrial Machinery and Equipment Wholesaling Industry is ultimately dependent on the level of manufacturing activity and industrial production within the United States. “During the recession, the US economy experienced a severe contraction in manufacturing,” says IBISWorld industry analyst Stephen Morea. “Falling consumer spending led to fewer manufacturing orders.” This trend, in turn, led to less demand for new machinery as well as less demand for industrial equipment repairs and replacement parts. With lower sales volumes, industry revenue plunged 22.0% in 2009, causing revenue to increase at a meager annualized rate of 0.2% to $192.9 billion in the five years to 2013.
In general, the Industrial Machinery and Equipment Wholesaling industry is fragmented, with an estimated 65.0% of operators employing fewer than 20 people. “The market's large size and product diversity make it difficult for any one company to establish more than a 5.0% share of the total market, which indicates low concentration,” says Morea. Firms can offer some, or most, of the products covered in the industry's definition, but few can provide all, leaving the field open to niche competitors. Industry concentration has remained low during the five years to 2013.
The Industry is improving, however, due to a resurgence in production by its primary markets. Private investment in machinery and equipment increased by double digits in 2010, 2011 and 2012, and expenditures are expected to increase similarly in 2013. The US oil and natural gas sector continues to show strong demand for drilling, refinery and pipeline equipment, which is supplied by industrial machinery wholesalers. Demand for metalworking machinery has also increased, fueled by a recovery in the automobile and heavy-machinery industries and increased industrial production has resulted in a greater need for storage and product handling equipment sold by industry wholesalers. In light of these positive conditions, revenue is expected to increase 4.7% over 2013. In the longer term, continued improvements in these downstream markets will lead to higher demand for industrial machinery at the wholesale level. Accordingly, IBISWorld estimates that revenue will during the five years to 2018.
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IBISWorld industry Report Key Topics
Industrial machinery and equipment wholesalers in this industry primarily distribute specialized machinery, equipment and related parts used in manufacturing, extraction and warehousing industries. New and used products are included as well as service receipts from repairs and labor performed on customer equipment. Wholesalers refrain from selling products to the public.
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Globalization & Trade
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Major Companies
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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.
Gavin Smith, IBISWorld, 310-866-5042, [email protected]
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