Material Handling Equipment Wholesalers

Material Handling Equipment Wholesalers

Brief Excerpt from Industry Overview Chapter:

Companies in this industry distribute fork lifts, inventory handling systems, hoists and cranes, and other material handling equipment products. No major companies dominate the industry.

The US material handling equipment distribution industry includes about 4,000 establishments (single-location companies or units of multi-location companies) with combined annual revenue of about $23 billion. The industry is forecast to grow at a high rate over the next two years. Key growth drivers include interest rates and the flow of goods in the economy.

COMPETITIVE LANDSCAPE

Demand depends on the quantity of goods moving through the US economy. The profitability of individual distributors depends on good marketing. Large distributors can negotiate favorable agreements with manufacturers. Small distributors can compete by specializing in a specific industry or type of equipment, or by offering excellent service programs. The industry is fragmented: the 50 largest companies generate about 35 percent of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include fork lifts (about 35 percent of sales) and inventory handling systems such as conveying equipment (15 percent) and hoists and cranes (10 percent). Used equipment of various types accounts for about 15 percent of sales. Distributors usually operate in either the lift truck segment or in the inventory systems segment.

Most distributors have only one or two outlets. Distributors are usually independent, but are often affiliated with a particular manufacturer. Although some lift truck manufacturers are based in the US, distributors also import lift trucks and other material handling...