Showing some steel: Rising demand and prices supported recent growth after a period of decline

The industry has faced challenging conditions over the past five years, owing to highly volatile commodity prices, and industry revenue has followed a similarly volatile trend. Metal wholesalers supply the construction market and a wide range of manufacturing industries, including carmakers, building-equipment manufacturers and packaging producers. Demand for industry services from major markets has improved helping to sustain industry growth in recent years.Sharp growth in motor vehicle manufacturing at the beginning of the five-year period through 2017-18 spurred demand for metal wholesalers. Domestic car production has continued to accelerate, but this has not been enough to counteract the slump in commodity markets, which has weighed on returns for industry operators...read more.

Industry Statistics & Market Size
Revenue
$25bn
Annual Growth 13-18
-3.6%
Forecast Growth 18-23
Profit
Employment
29,002
Businesses
1,603
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Volatile commodity prices have caused revenue to fluctuate significantly over the past five years
  • Rising demand from motor vehicle manufacturers has supported recent growth
  • The entry of niche firms is expected to push up enterprise numbers
  • Industry Report - Industry Investment Chapter

    The Metal and Metal Ore Wholesaling industry has a low level of capital intensity. IBISWorld estimates that for every £1.00 spent on capital, £8.32 is spent on wages. Although wages are a much more substantial cost than depreciation, both these items are dwarfed by the cost of metal purchases. This cost structure is common in wholesaling industries, where material costs are high and value added is typically fairly low.Capital intensity varies according to the focus of a firm’s operations. Many of the smaller firms are very labour-intensive operations that focus primarily on metal distribution. Larger firms that engage in a greater degree of processing are more capital-intensive than their smaller counterparts because they have to invest in specialised equipment. How...purchase to read more.

    Additional Insights for the Metal & Metal Ore Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Metal & Metal Ore Wholesaling Industry are

  • Ability to control stock on hand
  • Having links with suppliers
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Downstream demand from manufacturing and Total value of construction in the Metal & Metal Ore Wholesaling industry impact industry performance..

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    What's in this report

    What is the Metal & Metal Ore Wholesaling Industry?

    Firms operating in this industry wholesale ferrous and non-ferrous metals and ores. They also wholesale semi-finished metal products, gold and other precious metals. Industry activities also include value-added services such as cutting and shaping of metal products.

    Industry Products
  • Steel and iron
  • Stainless steel and alloys
  • Aluminium
  • Other non-ferrous metals
  • Metal ores
  • Precious metals and other
  • Industry Activities
  • Wholesaling iron and steel
  • Wholesaling non-ferrous metals, such as aluminium and copper
  • Wholesaling ferrous and non-ferrous semi-finished metal products
  • Wholesaling precious metals
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Downstream demand from manufacturing
  • Total value of construction
  • World price of gold
  • World price of steel

  • Current Performance
  • Metal prices constrain revenue
  • Manufacturing demand
  • The construction sector
  • Prices and profit
  • Structural changes and challenges
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream demand
  • Stealing the show
  • Industry structure
  • Ongoing challenges
  • Table: Metal & Metal Ore Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Metal & Metal Ore Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Metal Structure Manufacturing
  • Metal Door & Window Manufacturing
  • Radiator & Boiler Manufacturing
  • Electricity Distribution & Control Apparatus Manufacturing
  • Motor Vehicle Manufacturing
  • Trailer, Caravan & Motor Vehicle Body Manufacturing

  • Key Selling Industries
  • Iron & Steel Manufacturing
  • Steel Tube, Pipe & Related Fitting Manufacturing

  • Products & Services
  • Steel and iron
  • Stainless steel and alloys
  • Aluminium
  • Other non-ferrous metals
  • Precious metals and other
  • Metal ores
  • Chart: Metal & Metal Ore Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Supply and demand
  • Value-added processing services
  • Wholesale bypass

  • Major Markets
  • Machinery manufacturers
  • Fabricated metal product manufacturers
  • Construction operators
  • Automotive, rail and aviation manufacturers
  • Jewellery manufacturers
  • Other
  • Chart: Major Market Segmentation for the Metal & Metal Ore Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Metal & Metal Ore Wholesaling

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Metal & Metal Ore 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 Metal & Metal Ore 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 Metal & Metal Ore 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
    Bauxite
  • Metal ore used to produce aluminium.
  • Ferrous
  • A ferrous metal contains or consists of iron.
  • Ingot
  • Metal cast into a shape, usually rectangular, that is convenient for storage and transportation prior to subsequent processing.
  • Metal Ore
  • Ores are naturally occurring rocks that contain metal or metal compounds in sufficient amounts to make it worthwhile extracting them.
  • Non-Ferrous
  • A metal that does not contain any iron. Examples include aluminium and copper.
  • Tungsten
  • Metal ore used to produce alloy metals.
  • What Our Customers Say

    Why buy this report?

    The Metal & Metal Ore Wholesaling market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

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

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