Farm & Garden Equipment Wholesalers

Farm & Garden Equipment Wholesalers

Brief Excerpt from Industry Overview Chapter:

Companies in this industry distribute farm equipment, lawn and garden equipment, and related parts. No major companies dominate the industry.

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 US industry is concentrated: the 50 largest companies generate about 50% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major product categories include farm machinery and equipment (45% of industry revenue), home lawn and garden equipment tools (about 25%), other new lawn and garden machinery (about 20%), and other new farm machinery and equipment (about 10%). Other sources of revenue include parts installation and other service fees.