Los Angeles, CA (PRWEB) March 01, 2014
Actuators have a buyer power score of 3.1. This score reflects the fact that buyer power is mixed when it comes to actuators. A moderate level of concentration among actuator suppliers gives buyers many regional, national and global options to choose from; however, the specialized nature of these products also gives suppliers a degree of leverage over buyers.
Buyers are at a disadvantage due to the highly technical and specialized nature of actuators, which are often customized to serve specific functions within a company or industry. This fact can sometimes limit the field of available suppliers, and also makes it more costly to switch from one supplier to the next. Setting up a supply agreement for actuators is an expensive proposition for both buyer and seller because both sides must devote resources to understanding the needs and capabilities of the other. In addition, suppliers may need to modify existing machinery and equipment, or train employees on specific functions required by the buyer. These factors can sometimes offset any potential savings that would result from switching suppliers.
Another aspect limiting negotiating power is the fact that many suppliers use a cost-plus pricing model, in which actuator prices are tied directly to the cost of production, with a designated profit margin on top. Raw materials play a role in shaping price, especially given the fact that actuators are often subject to various degrees of wear and tear from air and liquid pressure, mechanical stress and electrical surges. Quality metals, plastics and electrical components increase the durability and potential life-span of actuators. For example, steel is a key input into actuators, and over the past three years its price has risen at an annualized rate of 2.5%, with many buyers forced to absorb the additional input costs through higher product prices. For more information, visit IBISWorld’s actuators procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of actuators. Actuators are a type of motor for moving or controlling a mechanism or system, and can be divided into four different types depending on how they are powered: hydraulic (liquid pressure), pneumatic (air pressure), electric and mechanical. Actuators have applications in a number of different industries, such as heavy machinery and industrial equipment manufacturing, aerospace and automobile production. While many suppliers are manufacturers, wholesalers also provide actuators.
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.