Over the next three years, the price of forklifts will continue to increase as newer, more expensive technologies become more popular.
Los Angeles, CA (PRWEB) December 26, 2013
Forklifts have a buyer power score of 3.2 out of 5, reflecting a balance between buyers and suppliers; a score of 1 signifies low buyer power and a score of 5 demonstrates high buyer power. Because forklifts can be either purchased as a completed product or customized to meet specific needs, the moderate level of specialization gives power to both the supplier and the buyer. “The work at hand for the buyer dictates the types of forklifts purchased,” says IBISWorld procurement analyst Lauren Setar. For example, a buyer looking to move goods of a specific weight capacity will purchase a forklift capable of handling that amount of weight. When choosing a specific forklift based on these work-related needs, buyers have fewer options, and as a result, their buyer power is reduced. A moderate level of market share concentration increases a buyer's negotiating power, however, as they can easily compare prices with another supplier.
The type of motor in a forklift can affect its price. For example, an electric-powered forklifts cost more than forklifts powered by an internal combustion engine. In addition to the upfront costs when purchasing forklift, there are also ongoing costs to owning a forklift, increasing its total cost of ownership. Furthermore, additions to a standard forklift, including different types of tires, extra batteries, chargers and filters, will add to the overall cost of a forklift, and buyers must be aware of these extra costs. “Buyers must also consider the supply risks to forklift suppliers, as volatile input costs can disrupt the supply chain,” says Setar. There are few direct substitutes for buyers, however, allowing suppliers to charge higher prices and decreasing buyers' purchasing power.
Fortunately for buyers, switching costs are relatively low: There are many forklift manufacturers and wholesalers in the market, and buyers can easily compare forklift prices and features before making a purchase. Major vendors include Hyster-Yale Materials Handling Inc., Komatsu Ltd., Mitsubishi Electric and Toyota Industries Corporation. Due to the number of suppliers, buyers can switch vendors relatively easily. As a result, both buyers and suppliers have power in forklift negotiations, which accounts for the moderate buyer power score.
For more information, visit IBISWorld’s forklifts procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of forklifts. Forklifts are small industrial vehicles with a power-operated pronged platform that can be raised and lowered to lift or move materials. Forklifts are a type of industrial trucks and include truck-type and hand-type pallet movers, skid jacks, portable stackers, straddle carriers, bomb lifts and loading and engine hoists. Suppliers of forklifts include manufacturers and wholesalers. This report focuses on new forklifts only and excludes overhead cranes, conveyors and elevators.
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.