The recovering economy led to renewed demand and substantially cut the volatility of key external drivers for filing cabinets.
Los Angeles, California (PRWEB) January 20, 2014
The buyer power score for filing cabinets and accessories is 3.7 out of 5.0. This score represents the advantageous price forecast and fragmented market for filing cabinets. During the global economic recession, prices for filing cabinets managed to climb upward despite a decline in demand from major end users. “The number of US businesses contracted, raising unemployment and shrinking the target market for filing cabinet suppliers,” says IBISWorld procurement analyst Keara Outlaw. However, high corporate profit managed to help offset declines in demand. Furthermore, high volatility of inputs, such as steel, created an unstable environment for suppliers; the inconsistent demand for steel led to major price swings that hurt supplier profitability and reduced buyer negotiation power.
In the three years to 2016, steel price volatility is expected to lower, helping slow the price growth of filing cabinets and accessories. Moreover, the number of businesses is expected to rise and the unemployment rate will continue to fall, leading to higher demand for filing cabinets. Despite recovering demand, filing cabinet prices are only expected to rise slightly during the period, which is less than half of the rate of the previous three-year period. “This slowing price growth gives buyers ample time to assess their filing cabinet needs before making a purchase,” says Outlaw.
Finally, low market share concentration will create a competitive price environment that benefits buyers. Also, the recovering economy is expected to boost the number of filing cabinet suppliers, and with input prices stabilizing, suppliers will be better able to predict future costs, increasing their flexibility in price negotiations. A greater number of suppliers in the market will lead to more price competition, which will increase buyer power even further. Major vendors include Herman Mille Inc., HNI Corporation, Knoll Inc. and Steelcase Inc.
For more information, visit IBISWorld’s filing cabinets and accessories procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of filing cabinets and accessories. Filing cabinets are used to store paper documents in file folders. The two most common types of filing cabinets are vertical and lateral; vertical filing cabinets have drawers extending from the short side of the cabinet, while lateral cabinets have drawers extending from the long side. Accessories for file cabinets include locks, file dividers and file rails for hanging folders. Filing cabinets are made from wood or sheet metal, but this report primarily focuses on metal filing cabinets due to their widespread use in business settings. Office furniture manufacturers, and furniture wholesalers and retailers can sell commercial filing cabinets. This report excludes all other types of commercial furniture.
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.