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Material Handling Equipment Distribution Industry Profile Excerpt
| SIC Codes: 3523, 3531, 3535, 3537, 5084 NAICS Codes: 33392, 423830 Page Length: 10-12 Last Quarterly Update: 9/15/2008 View Sample Industry Profile |
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About 4,000 distribution outlets for material handling equipment in the US generate combined annual sales of $15 billion, about half due to lift truck sales. Most distributors are privately owned, single-location companies, although manufacturers like NACCO also own some dealers. Among the largest lift truck manufacturers are NACCO Industries in the US, Linde AG in Europe, and Toyota in Asia. The industry is highly fragmented: the 50 largest companies hold about 35 percent of the market.
COMPETITIVE LANDSCAPE
Demand depends on the quantity of goods moving through the US economy. The profitability of individual distributors depends on good marketing. Small distributors can compete by specializing in a specific industry or type of equipment, or by offering excellent service programs. Large distributors can negotiate favorable agreements with manufacturers. Average annual revenue per employee is over $250,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Products include lift trucks and inventory handling systems like conveyors, sorters, storage racks, carousels, and shelving systems. Distributors usually operate in either the lift truck segment or in the inventory systems segment, but not both. Products are used in both manufacturing and inventory facilities. Well-known lift truck brands are Hyster, Yale, Crown, Clark, Caterpillar, Komatsu, Toyota, Nissan, and Raymond.
Most distributors have only one or two distribution outlets. A typical manufacturer sells products through a network of many distributors. For example, Clark Material Handling has over 200 dealers. Distributors are usually independent, but are often affiliated with a particular ...
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