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Farm & Garden Equipment Wholesalers
First Research, April 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US farm and garden equipment wholesalers industry includes about 6,000 companies with combined annual revenue of about $55 billion. No major companies dominate. The industry is fragmented: the 50 largest companies generate about 40 percent of revenue.
Companies in the industry distribute farm equipment, lawn and garden equipment, and related parts. The industry includes manufacturers' wholesale sales branches, as well as retail dealers in farm equipment, which are grouped with wholesalers because their products are sold primarily for business use rather than personal or household use. Retailers of lawn and garden equipment are covered in the Garden Centers & Farm Supply Stores industry profile.
COMPETITIVE LANDSCAPE
Demand is driven primarily by the health of the farming sector, which is tied to crop prices and yields. The profitability of individual companies depends on good merchandising and efficient operations. Large distributors have few economies of scale but can offer customers a wider range of products. Small distributors can compete successfully by holding exclusive territory rights to popular products. The industry is capital-intensive: average annual sales per employee are about $590,000.
Large manufacturers of farm equipment, like Deere and AGCO, mainly bypass independent wholesalers and use their own wholesale sales branches to sell directly to networks of local dealers.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product categories include farm machinery, equipment, and parts, which together account for 75 percent of industry revenue. Lawn and garden equipment and parts account for 10 percent of revenue.
Many...
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