Working on it: Volatile downstream demand and input prices will result in slow revenue growth

Over the five years to 2018, the Construction and Forestry Equipment Wholesaling industry in Canada has risen slowly due to volatile downstream demand and input prices. Though industry operators initially benefited from strong performance in the construction, forestry and mining markets, the majority of these gains were offset later in the five-year period, when falling commodity prices slashed mining sector activity. Nearly all major construction and forestry equipment manufacturers in Canada carry out domestic distribution through independent wholesalers...read more.

Industry Statistics & Market Size
Revenue
$11bn
Annual Growth 13-18
0.6%
Forecast Growth 18-23
Profit
Employment
20,733
Businesses
821
Market Share of Companies

Industry Threats & Opportunities

  • Improved energy prices prompted increased activity from mining and energy markets, boosting demand
  • Forestry plays an important role in the Canadian economy
  • Nonresidential construction is expected to grow strongly moving forward
  • Industry Report - Industry Investment Chapter

    The Construction and Forestry Equipment Wholesaling industry in Canada is characterized by a moderate level of capital intensity. In 2018, the average industry operator is estimated to spend $0.16 on capital for every $1.00 spent on wages. Capital costs vary among operators, but can be very high for certain operators that wholesale unusual, large and heavy pieces of equipment, which requires expensive specialized transportation to be moved. However, other construction and forestry equipment can be easily transported, reducing capital intensity. Labour is required to manage equipment inventories, organize and transport shipments of goods and develop and maintain relationships with suppliers and buyers of industry products. Therefore, industry wage costs are relatively high. Ind...purchase to read more.

    Additional Insights for the Construction & Forestry Equipment Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Construction & Forestry Equipment Wholesaling Industry are

  • Proximity to key markets
  • Having a loyal customer base
  • Having links with suppliers
  • IBISWorld analysts also discuss how external factors such as Value of nonresidential construction and Value of residential construction in the Construction & Forestry Equipment Wholesaling industry impact industry performance..

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    What's in this report

    What is the Construction & Forestry Equipment Wholesaling Industry?

    This industry wholesales specialized machinery, equipment and related parts used in construction and logging activity. This industry does not engage in the wholesaling of mining, oil well machinery or equipment (see IBISWorld report 41722CA).

    Industry Products
  • New construction equipment
  • New forestry equipment
  • Equipment parts
  • Used construction and forestry equipment
  • Industry Activities
  • Wholesaling concrete mixing and processing equipment
  • Wholesaling asphalt mixing and laying equipment
  • Wholesaling cranes, dredges and draglines
  • Wholesaling forestry equipment and machinery, such as forklift trucks for logs
  • Wholesaling graders, loaders and pavers
  • Wholesaling road building and maintenance machinery
  • Wholesaling scaffolding
  • Wholesaling tractors
  • Wholesaling sweepers and snow removal equipment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of nonresidential construction
  • Value of residential construction
  • World price of steel
  • Demand from agriculture, forestry, fishing and hunting
  • Demand from road and highway construction
  • Demand from utilities

  • Current Performance
  • Construction and mining demand
  • Demand from forestry
  • Competition and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream market demand
  • Demand from forestry
  • Industry structure
  • Table: Construction & Forestry Equipment Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Construction & Forestry Equipment Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Timber Services in Canada
  • Logging in Canada
  • Industrial Building Construction in Canada
  • Concrete Contractors in Canada
  • Road & Highway Construction in Canada

  • Key Selling Industries
  • Construction Machinery Manufacturing in Canada

  • Products & Services
  • New construction equipment
  • Used construction and forestry equipment
  • Equipment parts
  • New forestry equipment
  • Chart: Construction & Forestry Equipment Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Construction value
  • Forestry value
  • Other factors

  • Major Markets
  • Construction
  • Mining
  • Other businesses for resale
  • Forestry and logging
  • Other business end users
  • Government agencies
  • Chart: Major Market Segmentation for the Construction & Forestry Equipment Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent, utilities, depreciation, marketing and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Construction & Forestry Equipment Wholesaling

  • Basis of Competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Construction & Forestry Equipment Wholesaling Industry

  • Industry Globalization
    Toromont Industries Ltd.,
  • Table: Toromont Industries Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Construction & Forestry Equipment Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Construction & Forestry Equipment Wholesaling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Value of nonresidential construction (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cherry Picker
  • A crane with a platform attached at its top, used to raise and lower workers.
  • Dragline
  • A large excavator equipped with a bucket that is operated with a crane and wire.
  • Excavator
  • A piece of heavy construction equipment with a shovel or bucket attached to its front. Used to dig and move earth and other materials.
  • Feller Buncher
  • A large piece of forestry machinery equipped with a saw and clamp that cuts and gathers a large number of trees simultaneously.
  • Forklift
  • A vehicle equipped with a pronged device on its front used to lift and carry materials and equipment.
  • Grader
  • A construction machine with a long blade used to create a flat surface.
  • Knuckleboom Loader
  • A crane that picks up and transports individual felled trees for debranching (delimbing) and stacking in preparation for transportation out of harvesting site.
  • Roller
  • An engineering vehicle used to compact soil, gravel, concrete, or asphalt in the construction of roads and foundations.
  • Skidder
  • A word for a variety of types of machinery used to pull felled trees out of a harvesting area for transport to a sawmill.
  • Tractor
  • A tractor is any vehicle that is used to haul materials or equipment, either via an unpowered vehicle (i.e. a trailer) or with a shovel.
  • What Our Customers Say

    Why buy this report?

    The Construction & Forestry Equipment Wholesaling market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Construction & Forestry Equipment Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Construction & Forestry Equipment Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Construction & Forestry Equipment Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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