Industry Analysis & Industry Trends
The Hardware, Plumbing and Heating Equipment Wholesaling industry provides construction supplies such as plumbing fixtures, hand tools and boilers to construction contractors and hardware stores. This means its performance is largely based on the economic performance of these downstream markets. The UK electorate's decision to leave the European Union is expected to damage the performance of these markets in the current year, as consumer and business confidence falls. Expenditure on home improvements and construction projects therefore is expected to fall in 2016-17, threatening demand for industry operators.
Over the five years through 2016-17, industry revenue is expected to decline at a compound annual rate of 2.3% and reach £11.6 billion. A... purchase to read more
Industry Report - Industry Key Buyers Chapter
Market share concentration measures the extent to which the top players dominate an industry. Since it is highly fragmented and there are few dominant players, the Hardware, Plumbing and Heating Equipment Wholesaling industry is considered to have a low level of market share concentration. The top four players in the industry account for an estimated 12.4% of the market. Larger players such as Wolseley have a wider network of warehouses and commercial centres, and secure long-term deals with their clients, giving them more control over the industry. However, the sheer volume of players and intense competition keep concentration down.
The relatively low level of concentration can also be demonstrated by the distribution of the workforce among industry players. Acc.. purchase to read more