Digging deeper: Slow growth in downstream markets will increase demand for industry products

The Industrial Machinery and Equipment Wholesaling industry in Canada distributes a variety of products for multiple industries. These products include hoists and forklifts for the material handling sector in addition to diesel engines, pumps and metalworking machinery for the manufacturing sector. Despite this diversity, the industry's success is ultimately dependent on Canadian industrial output and manufacturing activity. Downward pressure on profit margins has influenced the decline in the number of establishments and enterprises, as unprofitable companies have exited the industry. Slower growth in the industry's downstream markets and overall economy will lead to a slight increase in demand for industrial machinery and equipment at the wholesale level over the five years to 2024...read more.

Industry Statistics & Market Size
Revenue
$24bn
Annual Growth 14-19
0.7%
Forecast Growth 19-24
Profit
Employment
58,729
Businesses
4,709
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Profit margins have decreased due to increased internal competition
  • Consumers have shifted the methods in how they research for new wholesalers
  • Developments in downstream markets will increase demand for industrial machinery
  • Industry Report - Industry Key Buyers Chapter

    The Industrial Machinery and Equipment Wholesaling industry in Canada has a low concentration and is highly fragmented. According to Statistics Canada and IBISWorld estimates, 37.1% of industry operators will employ fewer than five people in 2019. 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. Industry operators can offer some or most of the products covered in the industry's definition, but few can provide all, leaving the field open to companies specializing in niche product lines. Industry concentration has remained low over the five years to 2019, with the top two companies to account for less than 10.0% of industry revenue...purchase to read more.

    Additional Insights for the Industrial Machinery & Equipment Wholesaling Industry

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

  • Having links with suppliers
  • Having a good technical knowledge of the product
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Industrial capacity utilization and Aggregate private investment in the Industrial Machinery & Equipment Wholesaling industry impact industry performance..

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    What's in this report

    What is the Industrial Machinery & Equipment Wholesaling Industry?

    Industrial machinery and equipment wholesalers in this industry primarily distribute specialized machinery, equipment and related parts used in manufacturing, extraction and warehousing industries.

    Industry Products
  • General purpose machinery and equipment
  • Materials handling equipment
  • Other industrial machinery and equipment
  • Metalworking machinery and equipment
  • Food processing machinery
  • Hydraulic and pneumatic machinery and equipment
  • Industry Activities
  • Wholesaling general-purpose industrial machinery and equipment
  • Performing service and labour on equipment and machinery
  • Wholesaling oil-well machinery and equipment
  • Wholesaling material-handling machinery and equipment
  • Wholesaling metalworking machinery and equipment
  • Wholesaling food-processing machinery and equipment
  • Wholesaling hydraulic and pneumatic equipment and machinery
  • Wholesaling other industrial machinery and equipment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Industrial capacity utilization
  • Aggregate private investment
  • Demand from wholesale trade, durable goods
  • Overnight rate
  • World price of steel

  • Current Performance
  • Recovered output
  • Shifting consumer trends and behaviours
  • Increasing merger and acquisition activity
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream growth
  • Increased internal and external competition
  • Industry landscape
  • Table: Industrial Machinery & Equipment Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Construction In Canada
  • Manufacturing In Canada
  • Machine Shop Services in Canada
  • Wholesale Trade In Canada
  • Retail Trade In Canada
  • Public Storage & Warehousing in Canada

  • Key Selling Industries
  • Forklift & Conveyor Manufacturing in Canada
  • Metalworking Machinery Manufacturing in Canada
  • Valve Manufacturing in Canada

  • Products & Services
  • General purpose machinery and equipment
  • Other industrial machinery and equipment
  • Materials handling equipment
  • Metalworking machinery and equipment
  • Hydraulic and pneumatic machinery and equipment
  • Food processing machinery
  • Chart: Industrial Machinery & Equipment Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Replacement demand
  • Seasonality

  • Major Markets
  • Manufacturing markets
  • Other markets
  • Businesses for end use
  • Wholesalers
  • Chart: Major Market Segmentation for the Industrial Machinery & Equipment Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    WagesPurchasesProfitDepreciationMarketingRentUtilitiesOther Costs
  • Chart: Cost Structure Benchmarking – Sector vs Industrial Machinery & Equipment Wholesaling

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Industrial Machinery & Equipment Wholesaling Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Industrial Machinery & 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 Industrial Machinery & Equipment Wholesaling Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Industrial capacity utilization (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Capacity Utilization
  • In the context of this industry, this represents an industry's percentage of the manufacturing capacity, such as plants, that is actually used for production purposes.
  • Disintermediation
  • The direct sale of products from manufacturers to retailers or to end use markets, obviating the need for wholesalers.
  • Fasteners
  • Hardware devices that mechanically join two objects together, which includes screws, nuts, bolts and rivets.
  • Maintenance, Repair And Operations (Mro)
  • Machinery and equipment used mainly for maintenance and repair purposes, which includes conveyors and plumbing tools.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industrial Machinery & Equipment Wholesaling market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Industrial Machinery & 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 Industrial Machinery & 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 Industrial Machinery & 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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