The price of mechanical cables will continue its upward trajectory in the next three years, albeit more slowly than in the previous three years due to a deceleration in demand from key buyers.
Los Angeles, CA (PRWEB) March 09, 2014
Mechanical cable has a buyer power score of 3.7 out of 5. “This market's buyer power score shows that suppliers are usually flexible with their prices, but buyers should not expect to find huge deals,” according to IBISWorld procurement analyst Olawale Harrison. The top companies in this market offer the best and most reliable products but at a premium that is relatively nonnegotiable.
The recent price change for mechanical cable is reflective of the industries that primarily purchase them. “The construction, mining, oil and gas industries are heavy users of mechanical cable and have experienced rapid growth in the past three years,” says Harrison. Increased oil production and construction activity has increased prices for mechanical cable products across the board. Suppliers have increased their prices in an effort to capitalize on increasing demand from corporations, making up for lost revenue and declining profit margins experienced during the recession. Also, suppliers of mechanical cables have increased prices to insulate them from the risk associated with acquiring their main input, steel. The world price of steel has been very volatile during the last three years, and, therefore, suppliers have been attaching risk premiums to their product prices with the intention of protecting profit. Major suppliers in this market include ArcelorMittal, MSC Industrial Supply, W.W. Grainger Inc. and WireCo WorldGroup.
The price of mechanical cables is expected to slow during the next three years as demand from key buyers begins to decelerate. Aside from the construction industry, all downstream buyers are forecast to demand less going forward than in previous years. The next three years will present an opportunity for buyers of mechanical cables because reduced demand will cause prices to fall and increase buyer negotiating power.
For more information, visit IBISWorld’s Mechanical Cable 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 nonelectric iron and steel cables for industrial use. These include cables made from high-carbon steel, stainless steel and nonferrous metals used for lifting, towing or hauling. This report does not include electrical, communication or energy cables.
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.