Market prices will increase to increase due to greater demand from the construction and mining industries
Los Angeles, CA (PRWEB) November 26, 2013
The buyer power score for purchasing face and head protection is 3.3 out of 5. The higher the score, the more negotiating power the buyer has. This buyer score is indicative of moderate price growth over the past three years, low switching cost and the homogenous nature of face and head protection products. Buyers in this market can easily find comparable goods from a large number of suppliers and distribution channels and the widespread availability for these products gives buyers more negotiating power. The recent price change for face and head protection has been temperate, growing at an average rate of 1.7% per year over the three years to 2013. According to IBISWorld procurement analyst Olawale Harrison, “suppliers have increased the price of protective headgear in an effort to capitalize on growing demand from the construction and mining industries”. Additionally, the price of plastic, which is this market's primary raw input, has increased in the last three years. The increased cost of producing face and head protection equipment has placed upward pressure on prices, which will eventually weaken purchasing power for buyers.
There are a number of factors in this market that work in the favor of buyers however. Low-price imports from low-wage countries, specifically from Asia, continue to flood the American market, facilitating intense price competition between manufacturers and wholesalers alike. Heightened import penetration coupled with a strengthening US dollar makes the cost of imported goods cheaper for domestic buyers and is expected to help consumers across the board by offering better prices and cheaper alternatives. Also, increased automation is reducing labor costs among industry manufacturers. “Reduced labor costs are expected to slow overall price growth over the next three years,” adds Harrison.
The market for face and head protection is highly concentrated by the top four manufacturers: WW Grainger, 3M Company, Honeywell International and Mine Safety Appliances. Most of the major vendors are multinational conglomerates that have huge economies of scale and their sheer size allow them to create market products at very low costs. The low average price and high number of equivalents justify this market's mid range buyer score.
For more information, visit IBISWorld’s Face and Head Protection procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of face and head protection gear and related products. Face and head protection products help protect employees working in hazardous locations from head injuries. Face and head protection products include safety helmets, fire and rescue head gear, riot helmets and welder’s helmets all of which may or may not be equipped with helmet accessories such as visors, face guards or leather skirts. This market does not include motorcycle or sport helmets.
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
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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.