Stocking up: Rising residential construction activity in particular has helped to boost growth

Operators in the Construction Supplies Wholesaling industry wholesale building materials and products ranging from structural timber to finishing paints and varnishes. The industry sells materials that are required by the downstream housing, non-residential building and infrastructure construction markets, which means that its performance is largely dependent on activity in the construction sector. Demand for industry products is generated by hardware retailers, construction contractors and tradesmen.Over the five years through 2018-19, industry revenue is anticipated to increase at a compound annual rate of more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Industry revenue continues to expand, despite the effects of uncertainty on order books
  • A high level of office development activity supported demand from the commercial market
  • Increasing public-sector construction is expected to support continued growth in industry demand
  • Industry Report - Starting a New Business Chapter

    The Construction Supplies Wholesaling industry has moderate barriers to entry. The distribution of building materials requires large distribution facilities. The high cost of such facilities may deter some firms from entering the industry. While considerable initial capital outlay is required to establish a new storage centre, annual capital costs are minor for the industry.The pre-existence of distribution networks between operators and suppliers may in some cases be considered a barrier to entry. Existing operators benefit from their relationships with suppliers. A number of incumbent firms have strong relationships with downstream markets. The cost of competing against such firms may deter potential entrants...purchase to read more.

    Additional Insights for the Construction Supplies Wholesaling Industry

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

  • Having a clear market position
  • Having a diverse range of clients
  • Production of goods currently favoured by the market
  • IBISWorld analysts also discuss how external factors such as Construction materials price index and Demand from commercial building construction in the Construction Supplies Wholesaling industry impact industry performance..

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    What's in this report

    What is the Construction Supplies Wholesaling Industry?

    Businesses that operate in this industry carry out distribution operations to either retailers or other users of building and construction materials, except steel and other metals. The products sold are the materials that go into a construction, rather than the tools used for construction. Businesses may also have manufacturing or retailing operations, though industry revenue only reflects the wholesale function.

    Industry Products
  • Timber products
  • Floor and wall coverings
  • Paint, varnish and adhesives
  • Aggregate and cement
  • Glass
  • Industry Activities
  • Wholesaling timber products
  • Wholesaling paint, varnish and adhesives
  • Wholesaling aggregate and cement
  • Wholesaling floor and wall coverings
  • Wholesaling glass
  • Wholesaling sanitary equipment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Construction materials price index
  • Demand from commercial building construction
  • Demand from residential building construction
  • Total value of construction
  • Demand from hardware and home improvement stores
  • Real private consumption expenditure

  • Current Performance
  • Residential construction
  • Maintenance and repairs
  • Investment in infrastructure
  • Current concerns
  • Profit pressures
  • Chart: Revenue Growth

  • Industry Outlook
  • Residential demand
  • Infrastructure demand
  • Commercial demand
  • Competitive pressures
  • Profit performance
  • Table: Construction Supplies Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Commercial Building Construction
  • Residential Building Construction
  • Hardware & Home Improvement Stores

  • Key Selling Industries
  • Ceramic Sanitary Fixtures Manufacturing
  • Flat Glass Manufacturing
  • Paint, Coatings & Printing Ink Manufacturing

  • Products & Services
  • Timber products
  • Aggregate and cement
  • Other
  • Paint, varnish and adhesives
  • Glass
  • Floor and wall coverings
  • Chart: Construction Supplies Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • The value of construction
  • Other factors

  • Major Markets
  • Residential building contractors
  • Non-residential building contractors
  • Trade retail outlets
  • Other retailers
  • Chart: Major Market Segmentation for the Construction Supplies Wholesaling Industry

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

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Construction Supplies Wholesaling Industry

  • Industry Globalization
    Travis Perkins plc, Saint-Gobain SA, Grafton Group plc,
  • Table: Travis Perkins plc - financial performance
  • Table: Saint-Gobain SA - financial performance
  • Table: Grafton Group plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Construction Supplies 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 Construction Supplies Wholesaling Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Stands for do-it-yourself. This market typically consists of homeowners who purchase products and complete their own projects.
  • Vertical Integration
  • The extent to which a firm owns its upstream suppliers and its downstream buyers. Wholesale activities are commonly owned by manufacturers or retailers.
  • Wholesale Bypass
  • When retailers source products directly from manufacturers or importers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Construction Supplies Wholesaling market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

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

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