Demand for fire extinguishers and prices of input materials are forecast to continue growing as the economy recovers.
Los Angeles, CA (PRWEB) February 27, 2014
The buyer power score for fire extinguishers is 3.0 out of 5. This score represents unfavorable conditions for the buyer, like high level of specialization, input material cost volatility and high market share concentration, as well as favorable factors such as low switching costs and recent price trends. “Fire extinguishers have a high level of specialization,” says IBISWorld procurement analyst Keiko Cadby, “and specific fire extinguishers are only approved for use under appropriately classified circumstances.” The prices of fire extinguishers often fluctuate with price spikes from input material costs, which are somewhat mitigated by the financial stability of large conglomerate suppliers. However, with high market share concentration comes limited options, and buyers have reduced negotiation power when there are so few brands of approved fire extinguishers to choose from. Major vendors include Jarden Corporation, McWane Inc., Tyco International Ltd. and United Technologies Corporation.
Recent trends show steady growth in prices of fire extinguishers as well as profit margins, so buyers have more ability to negotiate price discounts, especially when volatile raw-input costs fall. “The recent global economic recession reduced the number of new businesses in need of fire extinguishers, but regulatory requirements heightened, necessitating more fire extinguishers in existing workplaces and keeping overall demand for fire extinguishers robust even during low numbers of housing starts and active businesses,” says Cadby.
Buyers are encouraged to seek fire extinguisher services with their purchase order so future costs are for recycling existing fire extinguishers, instead of buying new ones. Regulations mandate that fire extinguishers be dismantled and recharged or properly disposed of every five to 12 years, both of which require trained technicians and may involve hiring a fire protection service.
For more information, visit IBISWorld’s Fire Extinguishers procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of fire extinguishers. Fire extinguishers are products such as foams, powders and liquid chemical materials that inhibit or resist the spread of small fires, often in emergency situations. Fire extinguishers are used in commercial and apartment buildings, manufacturing and storage facilities, restaurants and other structures where small fires may pose a risk to people or goods. Fire extinguishers can be obtained from manufacturers, wholesalers and retailers. This report excludes flame retardant products such as professional firefighting provisions and flame retardant input chemicals.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Vendor Financial Benchmarks
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics
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.