A slow grind: Revenue is expected to fall 2017-18 as economic uncertainty limits business spending

The Machine Tool Wholesaling industry supplies a variety of machine tools to the manufacturing, construction, mining and forestry industries, amongst others. The industry began on a high base in 2012-13, after two years of strong recovery from the downturn of the previous five-year period. Industry revenue expansion is expected to have continued over the five years through 2017-18, supported by a number of major civil engineering projects and strong growth in the residential construction sector. This has been driven by rising house prices, which has drawn investment into residential housebuilding. However, demand from the mining, oil and gas industries was weak over the past five years due to falling commodity prices...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
1.3%
Forecast Growth 18-23
Profit
Employment
10,509
Businesses
974
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Falling business capital expenditure is expected to cause industry revenue to decline in 2017-18
  • Weak demand from the mining sector has somewhat restricted industry growth
  • The introduction of trade barriers may result in manufacturing firms moving abroad, reducing demand
  • Industry Report - Industry SWOT Analysis Chapter

    The Machine Tool Wholesaling industry is estimated to be in the mature stage of its life cycle. Industry value added is expected to grow at a compound annual rate of 0.6% over the decade through 2022-23. Over the same period, the UK economy is expected to grow at a compound annual rate of 2%. Despite industry revenue being expected to grow over the five years through 2017-18, the number of industry operators is anticipated to remain static. This represents a degree of industry consolidation, as wholesalers have lost ground to manufacturers. More and more manufacturers are distributing their own products, bypassing specialist wholesalers.Additionally, the products sold by industry operators are generally similar, and there has been little scope for differentiation. How...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
  • Grinding down
  • Weakening investment
  • Profit performance and consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream markets
  • Technological advances
  • Profitability
  • 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 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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 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 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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