Industry Analysis & Industry Trends
In the United Kingdom, agents involved in the sale of fuels, ores, metals and industrial chemicals have experienced several setbacks over the past five years. In particular, they have to contend with marked volatility in global commodity prices and equally dramatic falls in demand in response to the onset of the global economic downturn. In 2011-12, the industry is expected to post revenue of £5.7 billion, up 10.1% on the previous year, boosted in part by higher oil and other chemical prices. However this is essentially in line with revenue levels of £5.6 billion five years earlier and masks the high degree of volatility that has characterised the industry in recent times. Average annual growth rates over the five years to 2011-12 equate to just 0.4%... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entering the industry are medium. Aside from the general competitive pressures new entrants face in an industry with narrow profit margins that relies on high volume of sales, a major obstacle they must overcome is securing long-term supply contracts. This has proven to be a challenge for participants in the industry over many years, which has seen most of the companies that remain in the industry today being vertically integrated, with agent activities being only a small part of their total operations.
Wholesale bypass is a trend evident throughout the economy and this industry is no exception... purchase to read more