ERI Competition
Now Viewing ERI's competition in: Industrial Machinery Wholesalers (primary)
Recent Developments
Industrial Machinery Prices Rise - </strong>Industrial machinery prices received by US producers, an indicator of wholesale prices, rose 1.6 percent in February 2008 compared to a year ago, despite lower domestic demand. The strongest price increases were in food product, sawmill and woodworking, and textile machinery; the weakest occurred in semiconductor, printing, and paper industries machinery.
International Expansion Opportunities - </strong>US industrial machinery wholesalers with an international presence may offset domestic US economic weakness by growing US exports. The falling value of the US dollar and continuing economic growth outside the US have combined to increase demand for US-made products in other countries, creating an opportunity for wholesalers to expand overseas. Heavy machinery maker Caterpillar reaffirmed its 2008 forecast of 15 to 20 percent profit growth due largely to expected sales increases in Europe, Africa, the Middle East, Asia, and Latin America.
Manufacturing Contraction Continues - The US manufacturing sector continued to weaken in March, according to purchasing managers surveyed by the Institute of Supply Management, completing the weakest US quarterly performance since second quarter 2003. Manufacturer order backlogs continue to erode as new orders remained slow for the fourth consecutive month. Wholesalers continue to pass on heavy cost pressures as operational and transportation costs rise, even as overall demand continues to slow.
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.
Industrial Machinery Wholesalers Industry Forecast
from Hoover's/D&B subsidiary First Research
The domestic demand of US agriculture, construction, mining, oilfield, and metalworking machinery; as well as special, general, service, and misc. industry machinery is forecast to grow at an annual compounded rate of 4.7 percent between 2007 and 2012.
Machinery Demand Growth Improves
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Low dollar spurs export demand
- Large companies have purchasing economies
- Risk: Slowing economy cuts domestic demand
Industries Where ERI Competes
- Industrial Manufacturing
- Industrial Machinery & Equipment Manufacturing (primary)
- Fluid Control Equipment, Pump, Seal & Valve Manufacturing
