Los Angeles, CA (PRWEB) January 06, 2014
Batteries have a buyer power score of 3.6, meaning buyers have significant negotiating power in their hands when seeking to procure this product. Batteries included in this report include the common AA and AAA varieties, which include alkaline and rechargeable batteries, as well as lithium batteries used to power cell phones and batteries, and button cell batteries used to charge devices such as hearing aids, says IBISWorld analyst Natalie Everett. Batteries are a widely used, widely available product, so procuring them is a simple, straightforward process for the most part. However, certain applications require specific handling or more restricted battery specifications. For example, it is important to have a durable, reliable battery in smoke detectors and other devices where the battery-operated device's function is important. The market is characterized by wide availability of the product from a variety of vendors, low specialization and low switching costs. Together, these factors make for strong negotiating power in the hands of the buyer.
Despite rising input costs, battery prices have risen only modestly in the three years to 2013. Suppliers have contended with dramatically fluctuating, and mostly rising, raw material prices in recent years. Raw materials used in batteries include zinc, silver, nickel and graphite. Buyers were somewhat shielded from upstream material cost increases due to an oversupply of batteries among vendors, resulting from declining demand during the recession, continues Everett. Price fluctuates depending on the size of the order, the type of battery (in particular the chemicals used to create it), any warranty involved and the expected lifespan of the battery. Brand matters as well, as buyers strongly associate well-known brand names such as Duracell and Energizer with longer-lasting products. A Wired magazine article found there to be merit to this common conception: when tested, Duracell and Energizer outperformed generic dollar-store batteries. Many municipal agencies that purchase batteries specify that the batteries provided must be made by one of a handful of manufacturers. The aforementioned two and Rayovac are examples. The rate of price increases will slow some in coming years. As consumer spending and the industrial production index, a measure of manufacturing activity, increase and return to prerecession levels, the demand for batteries will increase. For more information, visit IBISWorld’s Batteries 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 assist buyers of batteries and cells, including nonrechargeable and rechargeable batteries. This report includes common batteries for electronic use, including alkaline and other dry cell batteries as well as lithium, zinc, mercury and nickel metal hydride batteries. This report also includes batteries of this ilk that are used to power medical devices, such as hearing aids. This report excludes vehicle batteries and system-powering batteries, such as lead-acid, nickel-iron, nickel-hydrogen and thermal batteries, or other batteries that power naval vessels, space probes and satellites, and other systems.
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.