Buyers should purchase sooner rather than later and lock in prices as demand for laboratory furniture rises and inputs costs increase.
Los Angeles, CA (PRWEB) February 25, 2014
Laboratory furniture has a buyer power score of 3.3 on a scale of 1 to 5. This score reflects low market share concentration and low vendor financial risk among suppliers, as well as low price volatility and the moderate availability of substitutes, says IBISWorld analyst Keiko Cadby. All of these factors boost buyer power. In contrast, high volatility in demand drivers and high product specialization affect the buyer power score negatively. Shipping and installation costs are significant, so proximity to shipping locations may also limit a buyer's choices.
Major companies in the laboratory furniture market include Hamilton Scientific LLC, Kewaunee Scientific Corporation, and VWR International LLC. Low market share concentration and low vendor financial risk allow buyers to choose from a variety of suppliers that have a high probability of remaining in business for years to come. According to Cadby, buyers should seek multiyear contracts to lock in prices, ride the short-term ups and downs of input costs and protect themselves from gradual long-term increases in prices as the economy improves.
Volatile prices of raw material inputs and high product specialization work against the buyer, because the resulting prices for lab furniture are mostly out of their control. However, buyers can mitigate these risks by negotiating clauses in the contract to lower prices when input costs fall, and by purchasing the cheapest furniture specifications that adhere to safety regulations.
Buyers typically upgrade and replace laboratory furniture every five to 10 years, so the buying process does not happen frequently. However, multiyear contracts with warranty, modification and repair clauses may be highly beneficial to the buyer if adjustments need to be performed on the products. Shipping and installation costs are unpredictable due to volatile fuel prices; buyers are encouraged to set parameters for these prices to avoid a potentially significant increase in the total cost of ownership. For more information, visit IBISWorld’s Laboratory Furniture procurement category market research report page.
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IBISWorld Procurement Report Key Topics
The report is intended to help buyers of laboratory furniture. These products include casework, such as lab benches, carts, tables, fixtures, cabinets and shelving. Suppliers of laboratory furniture include manufacturers, wholesalers and distributors. Key buyer institutions included in this report are schools, universities and research establishments that are engaged in laboratory education or use. Laboratory furniture is purchased on a stock or custom basis and may be assembled or unassembled. This report excludes laboratory equipment, such as fume hoods or refrigerators, as well as laboratory furniture rental services.
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.