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Hardware Wholesaling in New Zealand - Market Research Report (2014-2029)

Ekaterina Ezhova Ekaterina Ezhova Melbourne, Australia Last Updated: February 2024 ANZSIC F3339NZ

Revenue

$7.1bn

2024-25

$7.1bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

7,518

Businesses

867

Wages

$XXX.Xm

Hardware Wholesaling in New Zealand industry analysis

The COVID-19 pandemic has had mixed effects on New Zealand’s Hardware Wholesaling industry. Some hardware product segments recorded massive sales when homeowners worked on improving their homes during lockdowns. Significant COVID-19 pandemic-related supply shortages have caused a sharp hike in purchase costs – both in the industry and downstream – weakening demand from vital downstream markets and contributing to falling profitability. Unpredictable supply and demand swings have exhausted hardware product supply chains. Industrywide revenue has grown an annualised 3.3% through the end of 2023-24, totalling $7.1 billion, when revenue shrunk an estimated 6.5%, hurt by rising interest rates and inflated input costs.

Trends and Insights

  • The COVID-19 pandemic has had mixed effects on the industry's performance. Certain hardware product segments saw significant sales, while major supply disruptions caused a surge in purchase costs, diminishing demand from key downstream markets.
  • New Zealand’s prominence of homes with timber siding has historically contributed to burgeoning demand for exterior paint supplies. This segment has expanded as rising capital expenditure on residential buildings fostered paint and paint supplies sales.
  • Industry activity is skewed towards the Auckland region because of its transport facilities and position in the corporate and financial markets. This trend reflects an increased reliance on imported building supplies entering Auckland's ports.
  • Price is a primary basis of competition for hardware wholesalers. Offering product delivery during the COVID-19 pandemic allowed some industry wholesalers an opportunity to differentiate themselves from competitors.

Access hundreds of analysis and data

  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 3.3 % over the past five years, to reach an estimated $7.1bn in 2024.

Trends and Insights

Global supply chain disruptions and mounting interest rates have slashed demand from residential building construction

  • Capital expenditure on residential buildings has increased, underpinned by consistently low interest rates, a growing population and housing supply constraints.
  • Additional trends and insights available with purchase
Hardware Wholesaling in New Zealand
Revenue (2014-2029)
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Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Rising interest rates are poised to inhibit property market investments, softening industry demand

  • Declining capital expenditure on residential buildings is set to restrict demand from residential building construction, limiting industry revenue growth.

Biggest companies in the Hardware Wholesaling in New Zealand

Company
Market Share (%)
2024
Revenue ($m)
2024
Fletcher Building
967.4
Wesfarmers
584.2
Carter Holt Harvey Building Products
424.9

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Hardware Wholesaling in New Zealand
Products & Services
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Industry revenue is measured across several distinct product and services lines, including Hand and power tools, Bricks and Cement and other building materials. Hand and power tools is the largest segment of the Hardware Wholesaling in New Zealand.

Trends and Insights

A depreciating New Zealand dollar has hit demand for hand and power tools

  • The hand and power tools segment includes rudimentary hand tools (e.g. hammers, screwdrivers, pliers and tape measures) and electric and pneumatic power tools (e.g. drills, circular saws, mitre saws, routers, jigsaws, nail guns, and soldering irons).
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Industry firms wholesale hardware products including building supplies and tools to retailers and construction companies. The wholesaling of plumbing goods, electric cables and timber is not included in the industry.

What's included in this industry?

Hand and power toolsBricksCement and other building materialsDoors, windows and roofing productsPaint and paint suppliesWire, nails and building suppliesTilesFencing productsSecurity productsPlasterboard and plaster products

Companies

Fletcher BuildingWesfarmersCarter Holt Harvey Building Products

Purchase this report to view all 4 major companies in this industry.

Related Terms

WHOLESALE BYPASSDO IT YOURSELF (DIY)SUPPLY CHAINPOINT-OF-SALE (POS)

Industry Code

ANZSIC 2006

ANZSIC 3339 - Hardware Wholesaling in New Zealand

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The COVID-19 pandemic has had mixed effects on the industry's performance. Certain hardware product segments saw significant sales, while major supply disruptions caused a su...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

New Zealand’s prominence of homes with timber siding has historically contributed to burgeoning demand for exterior paint supplies. This segment has expanded as rising capita...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Industry activity is skewed towards the Auckland region because of its transport facilities and position in the corporate and financial markets. This trend reflects an increa...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Price is a primary basis of competition for hardware wholesalers. Offering product delivery during the COVID-19 pandemic allowed some industry wholesalers an opportunity to d...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

The Hardware Wholesaling industry comprises many small- to medium-scale businesses. These distributors service comparatively narrow regional markets or wholesale niche-buildi...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Fletcher Building's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Wesfarmers's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Carter Holt Harvey Building Products's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Fletcher Building, and factors influencing its performance in the industry
  • Description and key data for Wesfarmers, and factors influencing its performance in the industry
  • Description and key data for Carter Holt Harvey Building Products, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The Employment Act 1992 outlines the standard occupational health and safety requirements for New Zealand businesses. This act demands employers provide workers with a safe w...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Hardware wholesalers hire employees to perform technical, administrative and sales responsibilities. Wage costs have risen as large companies introduced pay rises to compete ...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Hardware Wholesaling industry in New Zealand in 2024?

The market size of the Hardware Wholesaling industry in New Zealand is $7.1bn in 2024.

How many businesses are there in the Hardware Wholesaling in New Zealand industry in 2024?

There are 867 businesses in the Hardware Wholesaling industry in New Zealand, which has declined at a CAGR of 1.9 % between 2019 and 2024.

Has the Hardware Wholesaling industry in New Zealand grown or declined over the past 5 years?

The market size of the Hardware Wholesaling industry in New Zealand has been growing at a CAGR of 3.3 % between 2019 and 2024.

What is the forecast growth of the Hardware Wholesaling industry in New Zealand over the next 5 years?

Over the next five years, the Hardware Wholesaling industry in New Zealand is expected to grow.

What are the biggest companies in the Hardware Wholesaling market in New Zealand?

The biggest companies operating in the Hardware Wholesaling market in New Zealand are Fletcher Building, Wesfarmers and Carter Holt Harvey Building Products

What does the Hardware Wholesaling in New Zealand include?

Hand and power tools and Bricks are part of the Hardware Wholesaling industry.

Which companies have the highest market share in the Hardware Wholesaling in New Zealand?

The company holding the most market share in New Zealand is Fletcher Building.

How competitive is the Hardware Wholesaling industry in New Zealand?

The level of competition is high and increasing in the Hardware Wholesaling industry in New Zealand.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • There are no industries to display.

Complementors

  • Timber Wholesaling in New Zealand
  • Textile Product Wholesaling in New Zealand
  • Furniture and Floor Covering Wholesaling in New Zealand
  • Hardware and Building Supplies Retailing in New Zealand

International industries

  • Stone, Concrete & Clay Wholesaling in the US
  • Roofing, Siding & Insulation Wholesaling in the US
  • Tool & Hardware Wholesaling in the US
  • Plumbing & Heating Supplies Wholesaling in the US
  • Tool & Hardware Wholesaling in Canada

View all industries in New Zealand

Methodology

How are Alfabank-Adres reports created?

Alfabank-Adres has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for Alfabank-Adres readers. Finally, each report is reviewed by one of Alfabank-Adres’s editors, who provide quality assurance to ensure accuracy and readability.

Alfabank-Adres relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do Alfabank-Adres analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in New Zealand include:

  • Statistics New Zealand
  • New Zealand Company Register
  • Ministry of Business, Innovation & Employment

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, Alfabank-Adres’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does Alfabank-Adres forecast its data?

Alfabank-Adres’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

Alfabank-Adres prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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