Industry Analysis & Industry Trends
The Construction Supplies Wholesaling industry is made up of both large-scale, multi-branch companies with operations spanning manufacturing and wholesaling, and small-scale independent merchants serving local markets. Operators sell items used in the construction process such as timber, paints and glass. Despite strengthening industry performance in recent years, uncertainty following the EU referendum result is expected to dampen industry growth in 2016-17. Wholesale bypass, which involves manufacturers supplying products directly to retailers and leaving wholesalers out of the supply chain, continues to threaten operators. Through this process, manufacturers can reduce their costs and supply products to the final consumer more quickly... purchase to read more
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. However, economy wide, the industry is considered to have a low level of capital intensity. 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.. purchase to read more