Los Angeles, California (PRWEB) February 16, 2014
Packing tools have a buyer power score of 3.6 out of 5.0. This score reflects a buyer's ability to negotiate lower prices due, in part, to the large number of suppliers; however, recent price trends have slightly weakened buyer power. “In the three years to 2013, rising prices for packing tools were largely due to a rise in demand stemming from the growth in consumer spending and e-commerce sales,” according to IBISWorld procurement analyst Jordan Weinstein. Packing tools are necessary for operations in many sectors. Rising consumer spending has increased demand for fast-moving consumer goods, products that are sold quickly at a relatively low cost. These products require packing tools to be shipped , and thus increase demand for packing tools vendors. In addition, e-commerce sales have also grown over the last decade and will increasingly be used to sell products. This will further increase demand for packing tools and ultimately drive prices up. Suppliers have also seen a rise of input costs, such as plastic, aluminum and rubber over the same period, which has led to increased pricing for packing tools. Major suppliers in this market include 3M Company, Office Depot Inc., Packaging Corporation of America and Staples Inc.
Fortunately for buyers, increased consumer spending and e-commerce sales mixed with slower annualized growth of input costs will not lead to substantial price growth for packing tools in the years to come. “Because suppliers face pricing pressure due to heavy competition, suppliers that drastically raise price due to increased demand will lose clients to those vendors offering the same products at a lower cost,” says Weinstein.
Price aside, buyer power is aided by the low market share concentration and high level of competition among packing tool suppliers. Such competition is magnified by the large number of packing tool suppliers and low switching costs for buyers. In addition, the commoditized nature of packing tools has led to a wide variety of suppliers capable of satisfying specific buyer requirements. These conditions are favorable for buyers of packing tools.
For more information, visit IBISWorld’s packing tools procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of packing tools make informed purchasing decisions. Packing tools enable efficient and effective packing of numerous goods. Packing tools include stretch film dispensers, hand-held box sealing tape dispensers and bag sealing tools or equipment. This report does not include air inflators or die-cutting machines.
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.