Wholesale Sales of Copiers & Office Equipment Is Down 5 Yrs in a Row

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Wholesale Sales of Copiers & Office Equipment  Is Down 5 Years in a Row

The Copier and Office Equipment Wholesaling industry has suffered from tough market conditions over the five years to 2013; furthermore, despite the increasing trend of wholesale bypass, increasing demand and an improving business sentiment index will help the industry rebound marginally. For these reasons, industry research firm IBISWorld has updated a report on the Copier & Office Equipment Wholesaling industry in its growing industry report collection.

New York, NY (PRWEB) December 29, 2013

The Copier and Office Equipment Wholesaling industry has suffered from tough market conditions over the five years to 2013. Low business sentiment and a decrease in the number of businesses after the recession reduced new and replacement office equipment demand, causing industry revenue to fall. During the recession, revenue marked its steepest decline, falling 9.8% and 17.5% in 2008 and 2009, respectively. Overall, revenue is estimated to decline at an annualized rate of 0.6% to $37.2 billion in the five years to 2013. Fortunately for the industry, demand conditions have slowly improved since 2010; as the US economy slowly began its recovery, the number of businesses and corporate profit rose. To this end, IBISWorld expects that revenue will increase 9.9% in 2013, aided by an increase in the number of new businesses and a rising business sentiment index, manifesting in greater demand for new office equipment.

According to IBISWorld Industry Analyst Zeeshan Haider, "In addition to weakened downstream demand, revenue for wholesalers has been hampered by the practice of wholesale bypass, whereby manufacturers forego wholesale distributors entirely and sell directly to retailers." For example, point-of-sale equipment manufacturers like Dell and NCR Corporation have increasingly relied on direct sales models through their sales forces rather than distribution through wholesalers, reducing demand for operators. Manufacturers believe that vertically integrating and selling directly to end consumers, as opposed to using wholesalers and independent retailers, gives them a unique advantage in how they present their product to potential consumers, and it also allows them to record and quickly act on the feedback they receive. In response, industry players have sought out ways to mitigate losses caused by wholesale bypass, including automating their inventory control processes.

Despite these efforts, wholesale bypass is expected to continue restraining industry revenue growth in the five years to 2018. Nonetheless, "increasing demand and an improving business sentiment index will help the industry rebound marginally," says Haider. As the economy recovers from its recessionary lows, the number of businesses and white-collar jobs are projected to rise through 2018, which will lead to higher sales.

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January 2, 2014 at 1:07 PM