Start your engines: Rising disposable incomes are expected to lift demand for new vehicles

Over the five years to 2017, revenue for the Automobile Wholesaling industry is expected to trend higher, bolstered by a resurgence in demand for new vehicles. Since industry operators wholesale passenger vehicles, in addition to sport-utility vehicles, industry revenue tends to ebb and flow with general fluctuations in the overall economic climate, particularly at the consumer level. Moreover, industry operators heavily rely on economic conditions in the United States, as a large portion of revenue is derived from Canada's southern neighbour. Revenue for the Automobile Wholesaling industry is expected to stagnate in the next five years, due to threats that will pressure industry demand...read more.

Industry Statistics & Market Size
Revenue
$92bn
Annual Growth 12-17
7.6%
Forecast Growth 17-22
Profit
Employment
22,267
Businesses
1,436

Industry Threats & Opportunities

  • Industry profit margins are anticipated to increase, bolstered by declining gas prices in the current five-year period
  • The stricter US regulations become, the more likely costs will increase
  • As profit margins trend higher, existing operators are expected to expand distribution facilities
  • Industry Report - Industry SWOT Analysis Chapter

    The Automobile Wholesaling industry is in its mature stage of its life cycle. Industry value added (IVA), a measure of the industry's overall contribution to the economy, is expected to rise at an annualized rate of 4.9% over the 10 years to 2022. By contrast, GDP is expected to grow at an annualized rate of 1.9% over the same 10-year period. Although IVA is expected to grow at a faster rate than the overall economy, this is not indicative of growing industry, as the industry started at a relatively low base due to the economic recovery and experienced a surge in demand in 2015 and 2016. Although the industry does not engage in international trade, the industry is heavily influenced by economic conditions in the United States. As ...purchase to read more.

    Additional Insights for the Automobile Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Automobile Wholesaling Industry are

  • Upstream vertical integration (ownership links)
  • Having a loyal customer base
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and New vehicle sales in the Automobile Wholesaling industry impact industry performance..

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    What's in this report

    What is the Automobile Wholesaling Industry?

    This industry wholesales a wide range of new and used vehicles, including automobiles and light trucks. Automobile wholesalers do not sell motor vehicle parts or tires.

    Industry Products
  • New cars
  • New light trucks and SUVs
  • Used automobiles
  • Industry Activities
  • Automobile wholesaling
  • Light-duty truck wholesaling
  • Sport-utility vehicles wholesaling
  • Mini-van wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • New vehicle sales
  • Overnight rate
  • World price of crude oil

  • Current Performance
  • Helpful hand
  • Reliance on the US market
  • Profit expands
  • Chart: Revenue Growth

  • Industry Outlook
  • Positive trends
  • Truck demand, fuel efficiency
  • Potential threats
  • Table: Automobile Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Automobile Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • New Car Dealers in Canada
  • Used Car Dealers in Canada

  • Key Selling Industries
  • Car & Automobile Manufacturing in Canada
  • SUV & Light Truck Manufacturing in Canada
  • Truck, Trailer & Motor Home Manufacturing in Canada

  • Products & Services
  • New cars
  • New light trucks and SUVs
  • Used automobiles
  • Chart: Automobile Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • New and used automobile dealers
  • Transportation services
  • Automobile leasing services
  • Other
  • Chart: Major Market Segmentation for the Automobile Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWages and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Automobile Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Automobile Wholesaling Industry

  • Industry Globalization
    General Motors Company, Ford Motor Company of Canada Limited,
  • Table: General Motors Company - financial performance
  • Table: Ford Motor Company of Canada Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Automobile 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 Automobile Wholesaling Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • World price of crude oil (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Heavy Trucks
  • Trucks that weigh over 26,000 pounds.
  • Light Trucks
  • Trucks that weigh 14,000 pounds or less.
  • Sport Utility Vehicle (Suv)
  • A rugged automotive vehicle similar to a station wagon but built on a light-truck chassis.
  • Transplants
  • Foreign-owned companies that have domestic production facilities, also known as domestic internationals.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Automobile Wholesaling market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Automobile 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 Automobile 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 Automobile Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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