As economic conditions continue to stabilize and consumer demand evens out, automobile wheel prices will start to display slow and steady growth.
Los Angeles, CA (PRWEB) March 12, 2014
IBISWorld calculates an overall buyer power score of 3.2 out of 5 for the automobile wheels market. This score indicates that buyers possess a range of negotiating options with wheel suppliers, but there are also some market characteristics that place restrictions on buyer power. “Buyers have a variety of suppliers to choose from, ranging from large international manufacturers to local retailers,” says IBISWorld procurement analyst Scott Winters. However, of the 3,610 suppliers currently operating, only a few are large multinational corporations; most are small retailers and wholesale businesses. The competition among suppliers is intense, putting significant downward pressure on prices. Buyers may benefit from these low prices, but low profit margins among suppliers leaves little room for further negotiation. Major vendors include Accuride Corporation, Superior Industries International Inc., Iochpe-Maxion and American Racing.
Prices have risen from 2010 to 2013, reflecting a boost in demand from consumers and businesses alike during this period. This price increase is avoidable however, especially considering that automobile wheel prices range widely. Buyers can also arrange for this price to include installation, which usually costs an additional fee. “Additional areas for buyers to negotiate include bulk pricing and discounts on related products such as tires and brake pads,” says Winters. Entering into a long-term contract with a supplier is rare as price spikes are infrequent and wheels are largely commoditized, with standardized designs available from an abundance of sources.
The prices of raw materials such as aluminum and steel have been volatile in the three years since 2010, however rapid post recession economic growth has boosted demand and reduced volatility in the price of automobile wheels. This is a benefit for buyers, as it indicates that wheel prices are not subject to price spikes despite fluctuating input prices. Furthermore, a decreasing unemployment rate and increased consumer confidence are projected to contribute to stable prices in the long term, as prices are expected to increase into 2016.
For more information, visit IBISWorld’s Automobile Wheels procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of automobile wheels or rims. The wheel or rims are generally sold through manufacturers, wholesalers and retailers and do not include the sale of tires. This also does not include wheels for trains or trucks or other automotive accessories.
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.