Cutting down: Revenue has been hit by weak demand from key industry markets

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 on a low base in 2013-14, due to weak demand from manufacturing and a sharp drop in demand from hard coal mining. Industry revenue is expected to decline over the five years through 2018-19, due to falling demand from mining, oil and gas industries, which was weak due to falling commodity prices. However, industry revenue has been supported by a number of major civil engineering projects and strong growth in the Residential Building Construction industry (IBISWorld report F41.202), which has been driven by rising house prices and government initiatives to support the housing more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Declining business confidence is expected to lower demand, causing revenue to fall
  • Operators may be able to gain a competitive advantage by offering innovative products
  • The potential offshoring of car manufacturing firms may negatively affect the industry
  • Industry Report - Starting a New Business Chapter

    Although the industry has a low level of market share concentration, barriers to entry are moderate. One major barrier derives from most of the larger industry players being global machine tool manufacturers that distribute their own products. These operators own globally renowned brand names and are able to give their wholesaling divisions exclusive rights to the products. For example, Amada has 3,100 design and technical patents, and the Amada United Kingdom Ltd subsidiary is responsible for the sale and services of all these products throughout the United Kingdom. This trend is becoming increasingly popular among successful manufacturers as vertical integration can improve supply chain efficiency and widen profit margins. As ...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
  • Total value of construction
  • Business confidence index
  • 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
  • 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
  • Manufacture of Other Machine Tools
  • Metal Forming Machinery 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
    ProfitPurchasesWagesDepreciation, utilities and rentOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Machine Tool Wholesaling

  • Basis of Competition
  • Internal competition
  • External 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
  • 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
  • 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 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 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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