Hydraulic Tools Procurement Research Report Now Available from IBISWorld
Los Angeles, California (PRWEB) December 01, 2013 -- Hydraulic tools have a buyer score of 3.2 out of 5.0. This score reflects moderate pricing trends, low market risks and an unfavorable market structure. Overall, pricing trends have a moderate effect on buyer power. Hydraulic tools are used extensively in the recycling, utility, manufacturing and construction sectors, and the improving economy has increased many of the demand drivers that encourage business in these sectors. Therefore, as nonresidential private construction, industrial production, electric consumption and manufacturing capacity utilization have increased in the three years to 2013, market prices have increased moderately as well, and they will continue to do so in the three years to 2016. “Hydraulic tool purchasing costs can be lowered by regular maintenance and scheduling, which extends their useful life and greatly reduces the need to purchase new tools,” according to IBISWorld procurement analyst Andrew Yang.
Buyers also benefit from low market risks. Most hydraulic tools suppliers are well-established, diversified global corporations that derive revenue from many products aside from hydraulic tools. “Diversified revenue streams help ensure that these companies have low financial risks,” says Yang. Hydraulic tool suppliers also have relatively low supply chain risks. Although hydraulic tools are dependent on critical inputs, such as steel, copper and plastic, these commodities are relatively available from many suppliers worldwide. Major suppliers include W.W. Grainger Inc., Snap-On, Atlas Copco and Stanley Black & Decker Inc.
Buying power is lowered by the market's structure. Market share concentration is very high due to significant barriers to entry and strong incentives to merge. Consequently, the hydraulic tool market has experienced significant merger and acquisition activity as companies seek economies of scale and resources for overseas expansion. Hydraulic tools fulfill a specific niche in that they can generate large amounts of power at relatively low cost, and there are few substitutes for hydraulic tools. Because of these factors, hydraulic tool buyers are limited in the number of suppliers that can meet their needs; therefore, buyers may be locked in with a specific supplier, giving suppliers leverage in raising prices.
For more information, visit IBISWorld’s hydraulic tools 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 help buyers of hydraulic tools, which are industrial tools powered by hydraulic fluids. This differs from pneumatic tools, which are powered by air, and tools powered by electricity. This report focuses on handheld hydraulic tools such pipe benders, pullers, chain cutters, crimpers, remote, nut breakers, breakers and drills. This report excludes large hydraulic devices such as shears, accumulators and classifiers, and hydraulic pumps.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Vendor Financial Benchmarks
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics
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.
Danielle Goodman, IBISWorld, +1 3108762175, [email protected]
Share this article