More businesses will generate more buyers who will buy the label devices, allowing suppliers to slightly raise prices.
Los Angeles, CA (PRWEB) January 29, 2014
Buyers of label applying and printing devices have a buyer power score of 3.8 out of 5. Scores closer to 5 exhibit a higher level of buyer power. “While still high, negotiation power primarily declined over the last three years, as the largest suppliers gained market share,” says IBISWorld business research analyst Aileen Weiss. “In addition, buyer power was influenced by competition among suppliers, a moderate level of product specialization and low switching costs.”
Competition between suppliers of label devices has increased over the past three years. This trend is expected to continue over the next three years as well, because the majority of devices are not specialized; therefore, more manufacturers can enter the market because the products are less complicated to mass-produce. “High competition will increase buyer power and provide a greater selection of suppliers,” says Weiss. Many manufacturers have attempted to differentiate themselves over the past three years by investing in research and development activities to create more technologically advanced and economically friendly devices. Consequently, wage costs increased to pay for the highly skilled employees. As a result, the price for label devices increased, leaving buyers with less negotiation power.
Another factor contributing to the buyer's negotiation power was the growing levels of corporate profit and the number of businesses. As consumers made more purchases post-recession, corporate profit increased and some buyers purchased new or additional label applying and printing devices. Moreover, as the number of businesses has grown, specifically food distributors and retailers, the number of buyers likely to purchase label devices also rose. Greater demand enabled suppliers to further raise prices. As the number of businesses is expected to grow in the years to 2016, buyers should purchase label devices now to avoid potential price spikes.
Ultimately, demand for label applying and printing devices will continue; downstream industries will need devices as buyers increase production. Therefore, buyers should lock prices via long-term contracts now. Furthermore, buyers should keep business needs in mind when evaluating different label devices, so as to reduce switching costs. Major vendors include Anixter International Inc., Brady Corporation, Brother Industries Ltd., Newell Rubbermaid Inc., Seiko Epson Corporation and WESCO International Inc. For more information, visit IBISWorld’s Label Applying & Printing Devices procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of label applying and printing devices. Label applying and printing devices are hand-held or small manual label applicators used primarily for office or warehouse use where one or few of the same labels are needed at one time. Label applying and printing devices allow users to customize labels by typing information into the device and immediately printing or stamping it on the tape before manually applying it to a product. Included in this report are label printers, identification press machines, dating and numbering machines, label applying machines, label making machines, letter embossers, label dispensers, adhesive label cartridges and self-inking stamps.
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.