Construction & Forestry Equipment Wholesaling in Canada
Over the five years to 2018, the Construction and Forestry Equipment Wholesaling industry in Canada has risen slowly due to volatile downstream demand and input prices. Though industry operators initially benefited from strong performance in the construction, forestry and mining markets, the majority of these gains were offset later in the five-year period, when falling commodity prices slashed mining sector activity. Nearly all major construction and forestry equipment manufacturers in Canada carry out domestic distribution through independent wholesalers. Generally, exclusive distribution rights are granted to a single wholesaler in a defined geographic area, which limits price-based competition and enables industry operators to achieve profit margins in excess of the sector's average. As the largest end user of industry products, construction sector demand is a key driver for industry performance. Over the five years to 2023, the industry will contend with headwinds related to a stagnant residential construction sector, but other factors will boost demand. Commercial activity has accelerated and is expected to continue to do so moving forward, particularly in major metropolitan areas.
This industry wholesales specialized machinery, equipment and related parts used in construction and logging activity. This industry does not engage in the wholesaling of mining, oil well machinery or equipment (see IBISWorld report 41722CA).
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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