Nailed it: Rising government spending and improving commodity markets will benefit the industry

Industry performance is a function of domestic manufacturing and construction output, although some operators close to the border sell to US markets as well. Over the past five years, the industry has benefited from growth in residential construction markets across North America, as well as steady growth in manufacturing markets. As a result, despite a somewhat sluggish economy, industry revenue has grown over the five years to 2018. Over the five years to 2023, IBISWorld expects the industry to experience more subdued growth. While domestic manufacturing markets are forecast to continue to slowly expand, the industry will be hampered by poor expected performance in domestic residential construction markets, with housing starts forecast to decline over the next five years...read more.

Industry Statistics & Market Size
Revenue
$18bn
Annual Growth 13-18
5.4%
Forecast Growth 18-23
Profit
Employment
22,081
Businesses
1,528
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Rising government spending and improving commodity markets should result in improving nonresidential construction figures
  • Industrial production has been hampered due to increased offshoring of manufacturing activity
  • Operators are expected to sell more to construction contractors and do-it-yourself homeowners
  • Industry Report - Industry Key Buyers Chapter

    The Tool and Hardware Wholesaling industry in Canada exhibits a low level of market share concentration. IBISWorld estimates that the top four companies combined generate less than 15.0% of total industry revenue. In 2018, no single company is expected to generate more than 4.0% of industry revenue. Even so, some moderately sized regional players have grown in market share over the past five years through organic growth and acquisitions. For example, Richelieu Hardware, which accounts for almost 4.0% total market share, has acquired almost 15 companies over the past five years to expand their presence.Low concentration is due to the fragmented nature of wholesaling operations. Est...purchase to read more.

    Additional Insights for the Tool & Hardware Wholesaling Industry

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

  • Having a good reputation
  • Proximity to key markets
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Industrial capacity utilization and Housing starts in the Tool & Hardware Wholesaling industry impact industry performance..

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    What's in this report

    What is the Tool & Hardware Wholesaling Industry?

    This industry wholesales a range of hardware products including fasteners, hand tools, power tools, locks and keys, metal knives and saw blades. Wholesalers purchase products in bulk and distribute them at competitive prices to users in the manufacturing, construction and commercial sectors. However, this industry does not distribute motor vehicle hand tools or machinists’ precision hand tools.

    Industry Products
  • Fasteners wholesaling
  • Hand and power tools wholesaling
  • Panellings, roofing, wallboards, mouldings and sidings
  • Other services
  • Industry Activities
  • Fasteners wholesaling
  • Hand and power tools wholesaling
  • Keys, locks and security hardware wholesaling
  • Metal cutlery wholesaling
  • 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
  • Housing starts
  • Government expenditure and investment
  • Demand from manufacturing

  • Current Performance
  • Major markets
  • External competition and opportunities
  • Fragmented industry
  • Chart: Revenue Growth

  • Industry Outlook
  • Major market dynamics
  • Competition and consolidation
  • Table: Tool & Hardware Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tool & Hardware Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Construction In Canada
  • Manufacturing In Canada
  • Hardware Stores in Canada

  • Key Selling Industries
  • Hardware Manufacturing in Canada
  • Power Tools & Other General-Purpose Machinery Manufacturing in Canada
  • Screw, Nut & Bolt Manufacturing in Canada

  • Products & Services
  • Fasteners wholesaling
  • Hand and power tools wholesaling
  • Other services
  • Panellings, roofing, wallboards, mouldings and sidings
  • Chart: Tool & Hardware Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • The level of activity in downstream markets
  • Wholesale bypass

  • Major Markets
  • Retailers
  • Other wholesalers
  • Manufacturing
  • Construction
  • Other
  • Businesses for end use
  • Chart: Major Market Segmentation for the Tool & Hardware Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Tool & Hardware Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tool & Hardware 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 Tool & Hardware 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 Tool & Hardware Wholesaling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Housing Starts (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Do-It-Yourself
  • Building, modifying or repairing something without the aid of professional contractors.
  • Fasteners
  • Hardware devices that mechanically join two objects together; include screws, nuts, bolts and rivets.
  • Power Tools
  • Tools that are operated by a nonmanual source of power; for example, by batteries or electricity.
  • 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 Tool & Hardware 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 Tool & Hardware 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 Tool & Hardware 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 Tool & Hardware Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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