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Material Handling Equipment Wholesalers
First Research, Feb 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US material handling equipment distribution industry includes about 4,000 establishments (single-location companies or units of multi-location companies) with combined annual revenue of about $23 billion. No major companies dominate the industry, which is fragmented: the 50 largest companies generate about 35 percent of revenue.
COMPETITIVE LANDSCAPE
Demand depends on the quantity of goods moving through the US economy. The profitability of individual distributors depends on good marketing. Small distributors can compete by specializing in a specific industry or type of equipment, or by offering excellent service programs. Large distributors can negotiate favorable agreements with manufacturers.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include fork lifts (about 35 percent of sales) and inventory handling systems such as conveying equipment (15 percent) and hoists and cranes (10 percent). Used equipment of various types accounts for about 15 percent of sales.
Distributors usually operate in either the lift truck segment or in the inventory systems segment.
Most distributors have only one or two outlets. Distributors are usually independent, but are often affiliated with a particular manufacturer. Although some lift truck manufacturers are based in the US, distributors also import lift trucks and other material handling equipment. Well-known lift truck brands are Hyster, Yale, Crown, Clark, Caterpillar, Komatsu, Toyota, Nissan, and Raymond. A typical manufacturer sells products through a network of many distributors. For example, Clark Material Handling has over 200 dealers. Some manufacturers own their own dealerships.
In addition to selling new and used equipment,...
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