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          1. Industrial Equipment Wholesalers Industry Profile

            Report Page Length: 10-12
            Last Quarterly Update: 8/18/2020
            SIC Codes: 5084
            NAICS Codes: 42383
            Chapters Include:
            Industry Overview Trends & Challenges Industry Forecast
            Quarterly Industry Update Call Prep Questions Website & Media Links
            Business Challenges Financial Information Glossary & Acronyms
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            Excerpt from Industrial Equipment Wholesalers Industry Profile

            Companies in this industry distribute machinery and equipment used in manufacturing, oil and gas exploration and production, and warehousing. Major companies include US-based Fastenal, HD Supply, Motion Industries, NOW, and WW Grainger, as well as ERIKS (Netherlands), Wolseley (UK), and Würth Group (Germany).

            Industrial machinery wholesalers seek markets with a strong manufacturing base and countries experiencing high growth in manufacturing. In terms of GDP, the wealthiest regions are the European Union, the US, China, India, and Japan.

            The US industrial equipment wholesalers industry consists of about 30,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $223 billion.

            COMPETITIVE LANDSCAPE

            The entry of online retailers, primarily Amazon Business, into the industrial equipment wholesale space has disrupted the business models of traditional players and intensified competition. Online B2B retailers often offer price comparison tools that allow customers to select from several different suppliers, forcing some established industrial equipment wholesalers to reduce their prices which has negatively affected profitability.

            In response to the shifting competitive environment, traditional industrial equipment wholesalers with brick-and-mortar locations have shuttered some operations and shifted resources toward online offerings. Companies are also differentiating themselves from the likes of Amazon Business by becoming more ingrained in their customers' supply chains, touting the expertise of service professionals, and offering on-site inventory management tools.

            Competitive Advantages:

            Price Transparency -- Allowing customers to compare prices online among several suppliers has given Amazon ...

             
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