|Last Quarterly Update:||3/18/2013|
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Companies in this industry distribute machinery and equipment used in manufacturing, oil and gas exploration and production, and warehousing. Major companies include MSC Industrial and the wholesale operations of manufacturers such as General Electric and NACCO Materials Handling Group (all based in the US), as well as Brammer (UK) and China National Machinery Import & Export Corporation.
The US industrial equipment wholesalers industry consists of about 25,000 companies with combined annual revenue of about $150 billion. Domestic demand for industrial machinery is expected to grow moderately in the next two years. Key growth drivers include low interest rates and the health of the economy.
Demand depends heavily on US manufacturing activity. Profitability depends on product selection and efficient operations. Large companies have economies of scale in advertising and sales programs. Small companies can compete effectively by specializing in particular industries, end-use applications, or geographical areas, and by offering special services. The industry is highly fragmented: the 50 largest companies account for about 25 percent of industry revenue.
Imports are an important source of product for industrial machinery wholesalers. Major sources of imports are Germany, Japan, China, and Canada.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are general purpose machinery such as pumps and engines (about 30 percent of revenue); oil well, oil refinery, and pipeline machinery (about 13 percent of revenue); and material handling equipment (10 percent). Other products include manufacturing machinery, machine tools, and oil ...
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