Harvesting Machinery Procurement Category Market Research Report Now Available from IBISWorld

Share Article

A low availability of substitutes and high market share concentration is bad for buyer negotiation power in the harvesting machinery market. To help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Harvesting Machinery to its growing collection of procurement category market research reports.

News Image
Prices for harvesting machinery will continue to increase due to rising global demand and input costs

Harvesting machinery has a buyer score of 2.4 out of 5. The buyer score represents the purchasing power buyers have and how effectively they can negotiate prices. According to IBISWorld procurement analyst Erick Delgado, “this market's buyer score shows that suppliers are relatively inflexible with their prices.” Factors that negatively affect buyer power include a low availability of substitutes and high market share concentration. Factors that positively affect buyer power are moderate price increases and low price volatility.

The market for harvesting machinery is dominated by a few large firms who build highly specialized products that do not have any direct substitutes. “This contributes to the industry having a high level of market share concentration,” say Delgado. The major players have increased their market share and expanded their customer base over the past three years by acquiring small manufacturers. Buyer power will further diminish as firms continue with this strategy.

Prices for harvesting machinery have increased at modest levels over the past three years. The rising cost of inputs, higher emission standards, and increased global demand have contributed to price increases. Manufacturers have struggled to forecast their input costs because of the volatility in steel prices. This uncertainty has caused producers to keep their prices high to avoid a reduction in profits. Regulation has forced suppliers to produce more fuel-efficient machines with lower emissions, increasing their research and development (R&D) expenses and overall cost to manufacture. These conditions are expected to cause an increase in prices during the next three years to 2016, which will make it harder for buyers to negotiate prices down. The four largest vendors in the market are CNH Global N.V., Deere & Company, AGCO Corporation, and CLAAS Group.

For more information, visit IBISWorld’s Harvesting Machinery 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 help buyers of harvesting machinery, which is sold through manufacturers and wholesalers. Harvesting machinery consists of a wide variety of manufactured agricultural and farm equipment, including combines, mowers and windrowers, pickers, dryers, balers and gins. This report does not cover fertilizing and planting machines, windmills, mowers for lawns and parks, and residential gardening or landscaping machines.

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
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
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.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
IBISWorld Inc.
+1 (310) 866-5042
Email >
Visit website