Powering on: Industry revenue is forecast to rise in the future despite recent declines

The Machine Tool Wholesaling industry supplies a variety of machine tools to the manufacturing, construction, mining and forestry industries, amongst others. The industry began the period growing strongly, with construction activity and Britain's industrial output rising. However, the EU referendum resulted in the value of the pound plunging. This increased purchasing costs for the industry and reduced profitability. Business confidence has also fallen over the period, causing many major markets for the industry to halt or cancel investment plans, especially in the manufacturing sector, resulting in declining industry revenue. However, strong growth is expected in residential, commercial and national infrastructure construction, which should mitigate industry decline to some extent...read more.

Industry Statistics & Market Size
Revenue
£1.8bn
Annual Growth 15-20
-1.7%
Forecast Growth 20-25
Profit
Employment
11,012
Businesses
921
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The low value of the pound has increased purchase costs, weighing on industry profit
  • Falling demand from the manufacturing sector has negatively affected demand
  • Demand from coal mining is set to continue falling over the next five years, limiting revenue growth
  • Industry Report - Industry Investment Chapter

    The Machine Tool Wholesaling industry has a low level of capital intensity. The industry has a capital-to-labour ration of 1:16.46, meaning that for every £1.00 of capital investment, firms spend an average £16.46 on wages. This shows that the industry is highly dependent on labour, and it has become more reliant on labour over the past five years as economic uncertainty has discouraged capital investment. Wholesaling involves buying, storing and selling goods that have been manufactured by a different company or division. Labour is needed to buy and sell the products, and establish both supply and customer relationships. Employees are also required to box, load and transport the machine tools. Wag...purchase to read more.

    Additional Insights for the Machine Tool Wholesaling Industry

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

  • Maintenance of excellent customer relations
  • Ability to control stock on hand
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Industrial production index and Downstream demand from manufacturing in the Machine Tool Wholesaling industry impact industry performance..

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    What's in this report

    What is the Machine Tool Wholesaling Industry?

    Firms in this industry sell machine tools that are used to cut, join or form metal and other rigid materials.

    Industry Products
  • Metal-cutting tools
  • Metal-forming tools
  • Joining tools
  • Woodworking tools
  • Other material cutting or forming tools
  • Industry Activities
  • Wholesaling metal-cutting tools
  • Wholesaling metal-forming tools
  • Wholesaling metal-joining tools
  • Wholesaling woodcarving tools
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Industrial production index
  • Downstream demand from manufacturing
  • Business confidence index
  • Total value of construction
  • Demand from crude petroleum and natural gas extraction
  • Demand from hard coal mining
  • Real effective exchange rate

  • Current Performance
  • Sharpening up
  • Burning out
  • Weakening investment
  • Profit performance and consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Manufacturing demand
  • Building up
  • Fossil fuels
  • Technology and profit
  • Table: Machine Tool Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Forestry & Logging
  • Hard Coal Mining
  • Crude Petroleum & Natural Gas Extraction
  • Residential Building Construction

  • Key Selling Industries
  • Agricultural & Forestry Machinery Manufacturing
  • Mining, Quarrying & Construction Machinery Manufacturing
  • Tool Manufacturing

  • Products & Services
  • Metal-cutting tools
  • Metal-forming tools
  • Joining tools
  • Woodworking tools
  • Other material cutting or forming tools
  • Chart: Machine Tool Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Manufacturers
  • Construction companies
  • Mining, oil and gas companies
  • Other
  • Forestry and woodworking companies
  • Chart: Major Market Segmentation for the Machine Tool Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitIn 2019-20 profit is expected to account for 5.9% of industry revenue. This is down from 9.4% in 2015-16. Prior to the EU referendum, profit peaked in 2015-16 as the industry benefited from a 30.1% drop in the price of steel, a key input into industry products, with the savings passed on to the wholesalers. Industry profit further benefited from a strong pound, as much of the industry’s products are imported, allowing purchase cost to fall. However, the result of the EU referendum caused a sharp and continuing devaluation of the pound since 2016-17. The devaluation of the pound combined with rising world steel prices over much of the rest of the period caused the average industry profit margin to fall since 2015-16. WagesPurchasesDepreciationMarketingRentUtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Machine Tool Wholesaling

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Machine Tool 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 Machine Tool 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 Machine Tool Wholesaling Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Lathe
  • A machine tool that rotates a working material so it can be cut, sanded or drilled.
  • Milling Machine
  • A machine that removes metal from an object by working it using a rotating circular cutter.
  • Soldering
  • A process in which two or more metal items are joined together by melting a filler metal into the joint.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Machine Tool Wholesaling market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

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

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