The rising costs of raw materials and recovering demand for ice makers in the years following the recession resulted in price growth.
Los Angeles, CA (PRWEB) February 28, 2014
Ice makers have a buyer power score of 3.2 out of 5.0. This score reflects overall favorable purchasing conditions for buyers, though several factors do limit buyer power. “In the three years to 2013, prices for ice makers have increased at a medium pace,” says IBISWorld procurement analyst Erich Abellera. “However, price growth is projected to slow in the three years to 2016.” Despite rising prices, volatility in prices has been very low during the three years to 2013. Thus, buyers face little risk of ice maker prices increasing suddenly.
Ice makers are in the mature stage of the product life cycle, and there is a low level of product specialization within this market. “Different suppliers sell the same ice makers that all perform the same basic functions, and the lack of specialization prevents prices from increasing significantly,” says Abellera. Additionally, switching costs are low. Buyers looking to switch brands do not face additional costs related to purchasing or installing a new ice maker, other than the cost of the machine itself. Buyers are also unlikely to lose any functionality when switching brands. Therefore, buyers tend to have strong negotiation power because of the viability of alternative brands.
The high level of market share concentration does somewhat limit buyer negotiation power. In the United States, the ice maker market is dominated by four manufacturers (Aucma Co. Ltd., Hoshizaki America, The Manitowoc Company and TriMark USA Inc.), and these manufacturers account for the majority of ice makers. The lack of competition has provided less incentive for suppliers to lower prices, and the high level of market share concentration gives buyers fewer things to negotiate about. In addition, there is a lack of substitutes for ice makers. While buyers have other ice making options, such as freezers, these alternatives are not as efficient as ice makers, which can quickly produce high volumes of ice on a daily basis. Therefore, ice makers are a necessary purchase for buyers that require large amounts of ice.
For more information, visit IBISWorld’s Ice Makers procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of ice makers. Suppliers provide a variety of commercial ice making machines, such as ice cube, ice nugget and ice flake makers. This report excludes industrial freezers, refrigerators and household appliances.
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.