Digging deeper: Improving downstream demand will reactivate industry revenue growth

Revenue for this industry is expected to stagnate over the five years to 2018, as rampant declines in global crude oil prices drastically reduce demand from vital downstream oil and gas markets. Moreover, a continuation of low energy prices stalled industrial and commercial development in resource-rich provinces, such as Alberta, which further pressured the industry and led to revenue declines in 2015 and 2016. Continued improvements in the industry's downstream markets will lead to higher demand for industrial machinery and equipment at the wholesale level over the five years to 2023...read more.

Industry Statistics & Market Size
Revenue
$22bn
Annual Growth 13-18
0.0%
Forecast Growth 18-23
Profit
Employment
62,640
Businesses
4,904
Market Share of Companies

Industry Threats & Opportunities

  • A surge in Canadian oil and natural gas production has benefited the industry
  • Strong demand from the oil drilling and gas extraction market aided industry growth
  • Demand from transportation and warehousing companies will increase
  • 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, more than 40.0% of industry operators will employ fewer than five people in 2018. 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 niche competitors. Industry concentration has remained low over the five years to 2018, and IBISWorld expects the top three companies account for less than 10.0% of total 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 Demand from oil and gas extraction 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
  • Oil well, refinery and pipeline machinery
  • 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
  • Demand from oil and gas extraction
  • Aggregate private investment
  • Demand from wholesale trade, durable goods
  • World price of steel

  • Current Performance
  • Early revenue growth and rising output
  • Weaker demand from the oil and gas markets
  • Increasing merger and acquisition activity
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream growth
  • 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
  • Oil Drilling & Gas Extraction in Canada
  • 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
  • Mining, Oil & Gas Machinery Manufacturing in Canada
  • Valve Manufacturing in Canada

  • Products & Services
  • General purpose machinery and equipment
  • Oil well, refinery and pipeline machinery
  • 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, mining and energy markets
  • Wholesalers
  • Businesses for end use
  • Other markets
  • Building contractors, heavy construction and specialty trade
  • 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
    ProfitPurchasesWages and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Industrial Machinery & Equipment Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Industrial Machinery & Equipment Wholesaling Industry

  • Industry Globalization
    Acklands-Grainger Inc.,
  • Table: Acklands-Grainger Inc. - financial performance

  • 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Industrial capacity utilization (2009-2023)

  • 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 (e.g. a plant) that is actually used for production purposes.
  • Fasteners
  • Hardware devices that mechanically join two objects together; include 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.
  • Wholesale Bypass
  • The direct sale of products from manufacturers to retailers or to end-use markets, obviating the need for wholesalers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industrial Machinery & Equipment Wholesaling market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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