Slow growth in raw material prices and a high level of competition among suppliers will keep growth in office desk prices slow
Los Angeles, CA (PRWEB) October 26, 2013
Office desks have a buyer power score of 4.1 out of 5, reflecting market conditions that are favorable to buyers. More than 25,000 suppliers provide office desks at the manufacturing, wholesale and retail levels. Current leading suppliers include Herman Miller Inc., HNI Corp., Knoll Inc. and Steelcase Inc. Across all sectors, there is a low level of market share concentration among office desk suppliers. “These key market characteristics result in significant price-based competition,” says IBISWorld procurement analyst Erich Abellera. “Consequently, office desk price growth has been slow over the past three years.” While some buyers form multiyear contracts with suppliers, many purchases of office desks are made on an ad-hoc basis. Low switching costs give buyers greater flexibility and negotiation power with suppliers.
Over the past three years, the prices of raw material inputs, such as lumber, plastic and steel, have pushed up purchasing costs for office desk manufacturers. According to Abellera, however, high competition among suppliers has helped keep growth in office desk prices slow compared with rising input costs. Despite volatility in raw material prices, the price of office desks has experienced a low level of volatility over the past three years. The type of material used in the desk is a major factor in pricing that is also affected by input prices. Desks can be made from solid wood, wood veneer, plastic and plastic laminates and metal. Plastic and metal inputs are often used for various desk features, detail and hardware.
Raw material prices are forecast to rise at a slower rate over the next three years. This trend is expected to result in slower increases in office desk prices during the three-year period. While input prices can experience volatility, buyers are unlikely to encounter spikes in office desk prices. In addition, although office desks can be customized, an overall low level of specialization gives buyers a large number of options at a wide range of prices. These market conditions ultimately give buyers greater purchasing power. For more information, visit IBISWorld’s Office Desks procurement research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of office desks. Office desks can be made of solid wood, veneer, laminate, plastic and steel and are sold by manufacturers, wholesalers and retailers. This product group excludes furniture intended for household use.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.