Industrial Wheels Procurement Category Market Research Report Now Available from IBISWorld

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Renewed demand for automobiles and new construction is expected to boost demand for industrial wheels, which will drive prices up. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Industrial Wheels to its growing collection of procurement category market research reports.

IBISWorld industry market research
As demand for wheels flattens out, industrial wheel prices are forecast to drop in the next three years

IBISWorld estimates that the market of industrial wheels has a buyer power score of 3.7 out of 5.0. This market allows some room for buyers to negotiate with suppliers, but economic trends are expected to hinder buyer power in the three years to 2013. Post-recession economic growth has caused wheel prices to rise steadily since 2009. From 2010 to 2013, wheel prices are expected to rise as global demand for wheels increases. “The market's anticipated stable demand is expected to reduce price volatility but hinder any incentive for suppliers to negotiate with buyers,” says IBISWorld procurement analyst Scott Winters. “In the three years to 2016, however, prices of industrial wheels are forecast to decline, placing more negotiating power in the hands of buyers.”

Buyers have the opportunity to negotiate regarding bulk discounts and related products, such as belts and hoses. There are an estimated 2,572 industrial wheels suppliers in the United States, and small wholesalers make up the majority of these suppliers. Among the largest suppliers operating in the market are Magna International Inc., W.W. Grainger Inc. and BorgWarner Inc. “With a moderate market concentration, suppliers are forced to compete with each other over price and customer service, which ultimately benefits buyers,” adds Winters.

Establishing multi-year contracts with suppliers is rare because industrial wheels are widely sold and available in a variety of designs, almost eliminating the need to create a custom design. Also, with wheel prices predicted to fall during the next three years, buyers are better off staying out of fixed-price contracts and waiting for prices to come down.

The high volatility of key inputs like aluminum and steel also affect buyer power. Unstable input prices can significantly increase the cost of manufacturing wheels, prompting suppliers to raise prices in an attempt to maintain their profit margin. The buying markets for aluminum and steel are similar to industrial wheels, specifically automobile and truck manufacturers. An increase in demand from auto makers would increase demand for industrial wheels and raw materials. In this situation, industrial wheel suppliers would face rising input costs and rising demand from key buying markets, prompting them to significantly increase their prices. For more information, visit IBISWorld’s Industrial Wheels procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of industrial wheels. Industrial wheels include impeller wheels, flywheels, pulleys and cog wheels (gears). These products are widely used as parts of internal combustion engines in automobiles, commercial vehicles and airplanes, as well as in stand-alone engines such as generators. Industrial wheels can be used in a range of applications, and they are available in a variety of sizes and specifications. These products are often supplied by large automobile parts manufacturers who produce a wide range of automobile-related parts and accessories. This report does not include rolling hardware such as casters or cart wheels used in industrial applications.

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
Market Profitability
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 or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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