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Home > Manufacturing > Fabrication > Machinery/Equipment/Tools
Industrial Machinery Wholesalers
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The US industrial machinery wholesale industry consists of 25,000 companies with combined annual revenue of almost $115 billion. Large companies include CE Franklin, MSC Industrial Supply, and the wholesale operations of large manufacturers such as General Electric. Independent distributors hold about 80 percent of the market. The industry is highly fragmented: the 50 largest companies account for only 25 percent of industry revenue.
COMPETITIVE LANDSCAPE
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 automated: average annual sales per employee is $350,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are general purpose machinery such as pumps and engines, manufacturing machinery, machine tools, materials handling equipment like forklifts, and oil field equipment. General purpose machinery accounts for 30 percent of industry revenue, manufacturing machinery for 20 percent; other types of machinery make up the rest. About 10 percent of revenue comes from sales of used equipment.
Suppliers are machinery manufacturers or other wholesalers. Companies typically handle products from multiple manufacturers, often under non-exclusive distributor agreements that may require the distributor to provide various product services. If the focus is on standard equipment and parts, companies may operate one or more warehouses, but if the focus is on ...
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