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Food Preparation Machinery Procurement Category Market Research Report Now Available from IBISWorld
  • USA - English


News provided by

IBISWorld Inc.

Mar 03, 2014, 15:00 ET

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An increase in employment and disposable income has led to more traffic at restaurants and hotels, prompting buyers to purchase more food preparation.

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Los Angeles, CA (PRWEB) March 03, 2014 -- Food preparation machinery has a buyer power score of 3.2 out of 5. “This score reflects gradually increasing prices and moderate buyer power for food preparation machinery products,” says IBISWorld procurement analyst Aileen Weiss. This average buyer power score is primarily due to increased downstream demand from Americans with renewed disposable incomes, counterbalanced by low market share concentration and high competition amongst suppliers. Because people can afford to dine out more frequently, buyers (such as restaurants) are more likely to expand their operations and require new or more food preparation machinery. Increasing demand is allowing suppliers to slowly raise prices for machinery, though, which has been occurring over the past three years.

In addition to rising demand, input price increases have been contributing to rising average food preparation machinery prices. “The price of steel and plastic materials and resin experienced considerable growth during the recession's recovery period, which made production more costly,” says Weiss. In response, suppliers transferred the higher cost of goods onto the buyer, further boosting prices and lowering buyer power.

In the three years to 2016, prices are expected to increase at a slightly slower rate. Stabilizing prices for raw materials are forecast to steady the cost of production and private investment in machinery is expected to fall. As supplier costs and demand go down, buyers will be better able to negotiate lower prices. A saturated market also positively affects buyer negotiation power because suppliers are heavily competing against one another to achieve a greater sales volume of food preparation machinery that can be mass-produced. Finally, regional suppliers may be able to offer buyers more flexible shipping terms and faster responses to servicing machinery. Major suppliers in this market include J.F. Duncan Industries Inc., Singer Equipment Company, Stafford-Smith Inc. and Wasserstrom Company.

For more information, visit IBISWorld’s Food Preparation 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 food preparation machinery, which includes bakery machinery, such as dough mixers and pastry rolling machines; meat and poultry processing and preparation machinery; dairy product plant machinery, such as pasteurizers and ice cream freezers; and other commercial food product machinery, such as crushing machinery and cheese making machinery. The machinery is primarily used for commercial and industrial uses. Suppliers include manufacturers and wholesalers. Products excluded from this report are cooking equipment, such as ovens and rotisseries; food preparation equipment, such as blenders, peelers and slicers; storage equipment; concession equipment; worktable equipment; ware-wash equipment; display cases and utilities.

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

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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.

Gavin Smith, IBISWorld Inc., +1 (310) 866-5042, [email protected]

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