Tool & Hardware Wholesaling in the US - Industry Market Research Report

Nuts and bolts: An increase in consumer spending will sustain industry revenue growth

The industry distributes hardware products, including hand tools, power tools and fasteners, to retailers, wholesalers and businesses for end use. Tools and hardware are distributed and used in construction, manufacturing and home improvement projects. As a result, sales from wholesalers rely on consumer spending, construction activity and the strength of the manufacturing sector. The 2020 pandemic was a catalyst for the residential construction sector, as work-from-home capabilities and increasing disposable income resulted in more people building and buying homes. But increasing inflation and interest rates slowed growth due to growing uncertainty. This resulted in revenue growing at a CAGR of 2.2% to $92.6 billion over the past five years, decreasing 0.3% in 2023 alone.

Operators in this industry purchase and distribute a range of hardware products, including hand tools, power tools, locks and keys, metal cutlery, fasteners and saw blades. Operators purchase these products in large volumes before distributing them in customized varieties and at competitive prices to retailers, other wholesalers and end use industries. This industry does not distribute nails, disposable plastic cutlery, hand tools for motor vehicles or hand tools for precision equipment.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.