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).
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.
Products, Operations & Technology
Major products are general purpose machinery such as pumps and engines (about 30% of revenue); oil well, oil refinery, and pipeline machinery (about 20% of revenue); industrial machinery, including water treatment equipment (about 15%); and material handling equipment (10%). Other products include manufacturing machinery, machine tools, and oil field equipment. Some companies distribute used machinery.