Growth of external demand drivers will continue to indirectly drive up prices for metal engraving machines
Los Angeles, CA (PRWEB) April 23, 2014
Metal engraving machines have a buyer power score of 3.6 out of 5.0. “This score reflects a buyer's ability to negotiate lower prices, largely due to the number of suppliers in the market,” says IBISWorld business research analyst Jordan Weinstein. “However, recent demand growth has slightly weakened buyer power.”
In the three years to 2013, the economic recovery following the recession fueled growth in consumer spending and private investment in metalworking machinery. Consumer spending indirectly spikes demand for metal engraving machines because they are used to engrave various products that are purchased when consumers increase spending habits. “These factors created higher demand for metal engraving machinery and indirectly drove prices up,” says Weinstein. In addition to demand growth, suppliers experienced price fluctuations of key input costs, such a plastic and aluminum. A portion of these input cost increases were passed on to buyers in the form of higher prices. As demand drivers continue to grow with the economic recovery, price is expected to keep rising in the next three years.
Fortunately for buyers, increased consumer spending and private investment mixed with slower growth of input costs will only lead to small to moderate price growth for metal engraving machines in the next three years. Despite overall price increases, buyers are able to purchase higher-quality machines than ever before due to technological advances. Furthermore, suppliers face heavy pricing pressure from competition, which contains dramatic price increases.
Aside from price, low market share concentration and high level of competition among mental engraving machine suppliers also aid buyer power. The sheer quantity of metal engraving machinery suppliers magnifies such competition. IBISWorld estimates that there are nearly 6,500 suppliers, giving buyers with a large number of capable suppliers to choose from to satisfy specific buyer requirements. These conditions are favorable for buyers of metal engraving machines. Major vendors include Gravotech Inc., Western Engravers Supply Inc., Datron Dynamics Inc. and Hardinge. For more information, visit IBISWorld’s Metal Engraving Machines procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.
IBISWorld Procurement Report Key Topics
This report is intended to help buyers of metal engraving machines make informed purchasing decisions. Metal engraving machines are used to cut precise designs, logos or text into metal. There are two main types: rotary engraving machines and laser metal engraving machines. The former involves cutting tools that are adhered onto a rotating platform, while the latter involves cutting the metal with a concentrated beam of light. This report does not cover other types of metal cutting machines, such as sheet metal cutter, plasma cutters or metal cutting saws.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
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.