Plastic pallet prices are anticipated to rise in the three years to 2016 due to further improvements in economic activity and expected increases in input costs
Los Angeles, CA (PRWEB) March 03, 2014
Plastic pallets have a buyer power score of 3.9 out of 5, reflecting high buyer power. “Because plastic pallets have a low level of specialization and low switching costs, buyers are able to attain stronger negotiation power,” says IBISWorld procurement analyst Lauren Setar. Additionally, substitutes for these products, such as wood pallets and used plastic pallets, are easily attainable, which benefits buyer purchasing power. However, many buyers have turned to plastic pallets in recent years due to heightened environmental awareness and plastic pallets' longer useful life, bacteria-resistant nature and ease of radio frequency identification tracking.
Buyers of plastic pallets also have strong buyer power due to the lack of a dominant players in the market. With the low level of market share concentration, buyers can look among a wide range of suppliers for the best price. “Thus, buyers can easily compare plastic pallet prices and features before making a purchase,” says Setar. The large number of suppliers also gives buyers the ability to switch suppliers relatively easily. There are no upfront costs associated with changing suppliers, but a buyer should be aware of the time necessary to find a new supplier that meets requirements and of the risk of new supplier performance. Major suppliers include Greystone Logistics LLC, Schoeller Allibert Ltd., Uline and US Plastic Corp.
Although buyers have overall negotiation power, buyer power is somewhat limited by the costs associated with inputs into plastic pallet production. Plastic materials and resin make up the largest component of plastic pallets and are tied to volatility in crude oil prices. In many cases, the supplier will pass these price fluctuations on to the buyer in the form of higher prices. Other times, plastic pallet suppliers will absorb the additional production cost and shrink profit margins. Therefore, because buyers have less negotiation room with suppliers, buyer power is limited.
For more information, visit IBISWorld’s Plastic Pallets procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of plastic pallets. Pallets provide a stable platform to assist in the mechanical handling of stacked goods for fork lifts. Pallets are used for moving and storing freight, including assembling, storing, stacking, handling and transporting goods in a load. Pallets are built to fit a lift truck's forks between the levels of a platform for secure movement. These pallets may either be made from raw or recycled materials and aid in reducing shipping, handling and warehousing costs. This report does not include wood pallets or used plastic pallets. Although some plastic pallet suppliers may provide pooling services or pallet management services, these services are not included in the plastic pallet market or in the procurement of plastic pallets.
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
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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.