Growth in demand has helped suppliers maintain margins and avoid dollar-for-dollar increases in product prices.
Los Angeles, CA (PRWEB) September 25, 2013
Aerial lift products have a buyer power score of 3.7 out of 5.0. The score reflects current negative pricing trends and a moderate rate of bargain power, but positive influences from the ease of purchasing complexity and strong purchasing confidence. Prices for aerial lifts have fluctuated over the past three years as a result of rising input and regulatory compliance costs. According to IBISworld procurement analyst Deonta Smith, "The increased availability of imported aerial lifts that are generally far less expensive than their domestic counterparts has helped keep the average price down."
Prices for aerial work platforms vary by the type, size and scope of the product. Aerial lift prices typically differ with regards to size, functionality and style. Standard aerial lifts with the greatest reach capabilities can cost the buyer up to $150,000 depending on its scope and functionality. "Despite the generally high price range, most suppliers of aerial lifts are able to provide maintenance services at competing prices," says Smith. Pricing is more favorable for high-volume buyers, though, such as construction equipment retailers, rental firms and the US military, which will likely have competing manufacturers enter bidding wars for contracts.
Aerial lift prices have experienced a low level of volatility during the past three years, although certain input costs have climbed up. Price volatility is caused by economic factors, such as demand from contractors and government spending, but is also influenced by prices of certain inputs. For instance, prices of steel, which is widely used in aerial lift manufacturing, have grown at an average annual rate of 3.3% over the three years to 2013. In 2013, the benchmark price of an average aerial lift is estimated at $33,718.
The cost associated with switching suppliers of aerial lifts varies depending on the type of suppliers. Buyers have greater leverage in negotiating contracts with more standard products and less power when procuring customized products. Additionally, the low availability of substitutes, a moderate level of market share concentration and the high specialization among suppliers are limiting buyers' negotiating power. For more information, visit IBISWorld’s Aerial Lifts procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of aerial lifts. Aerial lifts are elevated work platforms that include boom lifts, scissor lifts, vertical mast lift and personal portable lifts. They may be stationary, towed or mounted on trucks. Suppliers within this sector generally sell aerial lifts to contractors, rental firms and home improvement professionals.
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.