Industry Analysis & Industry Trends
Both fertilizer and pesticide prices experienced several convulsions over the past five years; as a result, revenue for the Farm Supplies Wholesaling industry has been extremely volatile. Nevertheless, both inputs experienced an overall increase during the period, resulting in revenue growth. Over the next five years, the industry is expected to continue to face volatility due to shifts in the price of inputs. Demand from key downstream industries involved in crop and animal production will strengthen as the overall economy improves and individuals spend more on food items. Nevertheless, volatility in the price of key product inputs, including oil and natural gas, will continue to obstruct steady revenue growth. As prices of these goods fluctuate, so too will revenue for the industry... purchase to read more
Industry Report - Industry Investment Chapter
The Farm Supplies Wholesaling industry exhibits a high level of capital intensity; for every dollar spent on employee wages, $0.49 is spent on capital. Capital intensity has increased over the past five years as the industry becomes increasingly automated. Operators have adopted new technologies to help streamline the wholesaling process. For instance, technologies such as radio frequency identification (RFID) are used to track orders and inventory levels, limiting the need for labour.
At the same time, workers' functions are shifting away from labour-intensive stocking and packaging activities toward customer relations... purchase to read more