| SIC Codes: | 5083 |
| NAICS Codes: | 423820 |
The US farm and garden equipment wholesalers industry includes about 6,000 companies with combined annual revenue of about $55 billion. No major companies dominate. The industry is fragmented: the 50 largest companies generate about 40 percent of revenue.
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 industry is capital-intensive: average annual sales per employee are about $590,000.
Major product categories include farm machinery, equipment, and parts, which together account for 75 percent of industry revenue. Lawn and garden equipment and parts account for 10 percent of revenue.
Buy Now