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Rising construction and supply spending leading to growth in manufacturing

By Michelle Froese | August 31, 2021

The U.S. sales of industrial supplies at the wholesale level are forecast to rise 3.9% yearly in nominal terms through 2025, according to new findings from Freedonia Focus Reports.

The new report from Freedonia forecasts U.S. sales of industrial supplies, including construction hardware and fasteners, at the wholesale level until 2025.

The largest driver of growth will be 3.8% annual gains in manufacturing shipments. This growth, originating in multiple categories of durable and nondurable goods, will support demand for a wide variety of industrial supplies.

This includes the sale of construction and retail products such as pipe, fasteners, hardware to construction firms, and packaging to manufacturers, other wholesalers, and retailers.

As more manufacturers adopt automation and connected (i.e., Internet-of-Things enabled) machinery, industrial supply wholesalers will sell higher value robotics and automation tools, as well as benefit from manufacturing process automation services and tracking of packages.

Mature markets for these products, in addition to strong competition from factory direct sales and Amazon’s Amazon Business unit, will restrain faster gains.

Sales of industrial containers and supplies are anticipated to remain the largest segment. Increases in manufacturing output will boost demand for chemicals and other goods that use rigid bulk packaging such as pails, drums, and bulk boxes.

Sales of abrasives are expected to be the fastest growing segment, expanding 5.4% per annum to 2025. Rising shipments of transport equipment, machinery, and metal products will propel growth. Value gains will be supported by growing use of super-abrasives (such as diamond and cubic boron nitride grinding wheels), driven by rising specialization and increasingly demanding performance requirements in manufacturing applications.

These and other key insights are featured in Freedonia’s report, Industrial Supplies Wholesale: United States. The report forecasts to 2021 and 2025 American sales of industrial supplies in nominal U.S. dollars at the wholesale level. Total sales are segmented by product in terms of:

  • Hardware and fasteners
  • Industrial valves and fittings
  • Strapping and tape
  • Welding supplies
  • Abrasives
  • Industrial containers
  • Mechanical rubber goods
  • Other supplies such as automotive parts, pipes and tubing, and pumps and compressors

To illustrate historical trends, total sales are provided in annual series from 2010 to 2020.

This report presents total sales of industrial supply wholesalers, including those of products that are not strictly considered industrial supplies.

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Filed Under: Fastening + joining
Tagged With: freedoniagroup
 

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