Full metal: Rising commodity prices will facilitate industry revenue growth

Over the five years to 2018 industry performance has been highly volatile in response to sharp fluctuations in the price of steel. Industry volatility has also been influenced by fluctuating prices of oil and natural gas, as prices of these goods have significant knock-on effects on demand from attendant manufacturing industries as well as nonresidential construction markets. Over the five years to 2023, IBISWorld estimates industry revenue to increase. While manufacturing growth is forecast to slow, rising commodity prices should result in increased investment in a variety of industries, expanding demand for numerous manufactured goods as well as stimulating investment in infrastructure and other nonresidential construction activities...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • The world price of steel is likely to increase, benefiting industry revenue
  • Operators have found respite in construction markets amid stagnating manufacturing markets
  • The subdued recovery in metal prices should suppress operating profit
  • Industry Report - Industry Key Buyers Chapter

    Market share concentration among metal wholesalers is low. The top four industry operators are estimated to account for 19.5% of industry revenue in 2018. The low market share concentration is partly due to the scale of the industry, as the majority of industry operators are smaller players that operate on a local or regional level.In total, the industry contains an estimated 1,160 operators. While industry participation has been falling in recent years and market share concentration has risen somewhat in response to consolidation activity, with some of the largest operators opening up new centres or acquiring small competitors, the concentration has not risen significantly. Ind...purchase to read more.

    Additional Insights for the Metal Wholesaling Industry

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

  • Effective quality control
  • Ability to control stock on hand and maintain appropriate inventory levels
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Value of nonresidential construction and World price of steel in the Metal Wholesaling industry impact industry performance..

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    What's in this report

    What is the Metal Wholesaling Industry?

    Operators in this industry distribute primary metals and metal products to end markets. The majority of products distributed are ferrous, although the industry also distributes aluminum and other nonferrous metals. Operators may also perform functions such as sawing and cleaning on a custom basis and as part of the distribution service. The distribution of precious metals such as gold, silver and platinum is excluded from this industry’s operations.

    Industry Products
  • Iron and steel products
  • Stainless steel and alloys
  • Aluminum and aluminum products
  • Other nonferrous metals and products
  • All other products
  • Industry Activities
  • Wholesaling steel products
  • Wholesaling stainless steel and alloys
  • Wholesaling aluminum and aluminum products
  • Wholesaling other nonferrous metals and products
  • Shaping and processing metals to customer specifications
  • 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
  • World price of steel
  • Industrial capacity utilization
  • Government expenditure and investment
  • Value of residential construction

  • Current Performance
  • Manufacturing performance
  • Mixed construction markets
  • Steel prices and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Manufacturing markets
  • Construction and energy markets
  • Price and participation gains
  • Table: Metal Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Homebuilders in Canada
  • Apartment & Condominium Construction in Canada
  • Tractors & Agricultural Machinery Manufacturing in Canada
  • Construction Machinery Manufacturing in Canada
  • Mining, Oil & Gas Machinery Manufacturing in Canada
  • Car & Automobile Manufacturing in Canada
  • Aircraft, Engine & Parts Manufacturing in Canada
  • Train, Subway & Transit Car Manufacturing in Canada
  • Ship Building in Canada
  • Commercial Building Construction in Canada

  • Key Selling Industries
  • Aluminum Manufacturing in Canada
  • Iron & Steel Manufacturing in Canada
  • Metal Pipe & Tube Manufacturing in Canada
  • Metalworking Machinery Manufacturing in Canada
  • Wire & Spring Manufacturing in Canada

  • Products & Services
  • Iron and steel products
  • Other nonferrous metals and products
  • Stainless steel and alloys
  • Aluminum and aluminum products
  • All other products
  • Chart: Metal Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Demand from manufacturing
  • Demand from construction
  • Demand from energy industries

  • Major Markets
  • Manufacturing and mining industries
  • Retail and other wholesalers for resale
  • Building contractors
  • Businesses for end use
  • Other
  • Chart: Major Market Segmentation for the Metal Wholesaling Industry

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

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

  • Industry Globalization
    Samuel, Son & Co. Ltd., Russel Metals Inc.,
  • Table: Samuel, Son & Co. Ltd. - financial performance
  • Table: Russel Metals Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Metal 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 Metal Wholesaling Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • World price of steel (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Punching a hole in sheet metal for the purpose of using the removed piece.
  • Nonferrous Metal
  • A metal that does not contain iron.
  • Pickling
  • Using strong acids to remove surface impurities (e.g. rust or scale) from metals.
  • Rolling Stock
  • Vehicles that move on a railway.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Metal Wholesaling market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

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

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