Industry Analysis & Industry Trends
The industry has faced challenging conditions over the past five years, owing to fluctuations in world commodity markets and volatile conditions in key downstream industries. Metal wholesalers supply the construction market and a wide range of manufacturing industries, including carmakers, building-equipment manufacturers and packaging producers. In the years following the downturn, demand for industry services from major markets improved significantly. However, the economic recovery has come in stops and starts. Consequently, conditions have been volatile, compounded by market-specific demand variances and large swings in metal prices.
Sharp growth in motor vehicle manufacturing at the beginning of the five-year period through 2016-17 spurred demand for metal wholesalers... purchase to read more
Industry Report - Industry Investment Chapter
The Metal and Metal Ore Wholesaling industry has a medium level of capital intensity. IBISWorld estimates that for every £1.00 spent on capital, £4.63 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