As industrial production continues to gain momentum, vendors will fulfill pent-up demand and likely cause hose prices to rise
Los Angeles, CA (PRWEB) December 09, 2013
The hoses and hose fittings market has a buyer power score of 2.5 out of 5, representing a less than advantageous market for buyers. Hoses are used to introduce gases and liquids into an environment, and to extract gases and liquids away from an environment. Hoses are present in a variety of industrial and commercial settings: they are used for water suction and release; for food and beverage transfer; for gold dredging and more. About one-half of industrial-use hoses are general, multi-purpose items that are widely available. “Therefore, this market's buyers typically have a relatively simple buying process and a high negotiating ability,” says IBISWorld procurement analyst Natalie Everett. “The other half of the products in this market are built for high-volume, high-speed applications, and this specialization decreases their availability and buyers' negotiating power. Specialty hoses are available through a limited selection of manufacturers, wholesalers and retailers.”
Prices of hoses and hose fittings have risen during the three years to 2013, but the rate of increase has been remarkably low considering the volatility of input costs, which are this market's largest expense. Relative to increases in input costs, the market's price increases have been low, and they have occurred at the expense of vendors' profit, which has decreased as vendors were forced to absorb some of the price increases when they were unable to pass the brunt of increases on to buyers. “Ultimately, this profit pinch has slightly weakened buyers' negotiating position,” says Everett.
Because of higher input costs, hose sellers have become more highly concentrated over the past three years. The four largest hose sellers are comprised by Tomkins PLC, Eaton Corporation, WW Grainger Inc. and Airgas Inc. Their high market share concentration weakens buyers' negotiating power even further; however, hose vendors have strong financial positions, so buyers do not pose much bankruptcy risk when collaborating on the purchase of hoses. For more information, visit IBISWorld’s Hoses & Hose Fittings procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of hoses and hose fittings for fluid and gas distribution in an industrial or commercial setting. Hose manufacturers, wholesalers and retailers provide industrial hoses, including hydraulic hoses, tubes and their fittings, garden hoses and other water hoses. These hoses are made primarily of rubber and plastic. This report does not include medical tubing or fluid power or automotive hoses. Laminated plastic tubes are not included in this report; nor are pipes. Tubes are distinct from pipes by definition; pipes are measured by their interior diameter because their most important characteristic is their capacity, whereas tubes are measured by their exterior diameter and their most important property is their tolerance or wall thickness.
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.