Tool & Hardware Wholesaling in Canada
The Tool and Hardware Wholesaling industry in Canada has experienced revenue growth over the five years to 2017 despite a sluggish economy. Revenue is expected to increase in 2017, as demand from downstream manufacturing will continue to drive industry sales. Over the past decade, wholesale bypass has presented a challenge to the industry. It has intensified competitive pressures in the industry, forcing operators to find ways to improve inventory management and cut unnecessary costs. For many industry companies, consolidation has been the most effective way to streamline operations, resulting in fewer wholesalers controlling a larger share of revenue over the past five years. Over the five years to 2022, IBISWorld expects more stable construction markets and government spending to boost demand for tools and hardware. Still, bypass will limit the extent of revenue growth and keep profit margins modest.
This industry wholesales a range of hardware products including fasteners, hand tools, power tools, locks and keys, metal knives and saw blades. Wholesalers purchase products in bulk and distribute them at competitive prices to users in the manufacturing, construction and commercial sectors. However, this industry does not distribute motor vehicle hand tools or machinists’ precision hand tools.
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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