Price growth is expected to be slower due to high competition and smaller projected increases in raw material costs.
Los Angeles, CA (PRWEB) April 25, 2014
Conferencing tables have a buyer power score of 3.5 out of 5. This score reflects somewhat favorable market conditions for buyers, though some factors reduce buyer negotiation power. Buyers benefit from the low level of specialization in this market. While conferencing tables can be customized, they are often mass produced, and differences between tables are largely cosmetic. Therefore, buyers have a wide availability of options, with many suppliers providing conferencing tables at the manufacturing, wholesale and retail levels. Although there are several large conferencing table manufacturers and retailers, including Steelcase Inc., Herman Miller Inc. and Office Depot Inc., a large number of smaller businesses also operate in this market. “The top four suppliers account for less than a quarter of total market revenue, indicating a low level of market share concentration,” says IBISWorld procurement analyst Erich Abellera. “This trend results in a high level of price-based competition, benefiting buyers.”
Recovering demand in the years following the recession has contributed to moderate price growth over the past three years. Corporate profit, the number of US businesses and private nonresidential construction have all increased over this period, driving demand for conferencing tables and increasing prices. Thus, over the three years to 2013, buyer power was slightly reduced. “Over the next three years, prices are forecast to rise at a slightly slower pace, resulting in more favorable pricing conditions for buyers,” adds Abellera.
The supply chain for conferencing tables faces a medium level of risk. Raw materials, such as sawmilled lumber, plastic and steel, can experience high volatility in prices, depending on supply and demand. Average steel prices, for example, increased sharply in 2010 and 2011 before declining in 2013. Volatility in input prices makes purchasing costs more difficult for suppliers to anticipate, and rising input costs can be passed onto buyers. This supply chain risk can diminish buyer power. However, suppliers compete significantly on price, as reflected in low average profit margins. Thus, over the past three years, prices for conferencing tables have not been as volatile as prices for raw material inputs. For more information, visit IBISWorld’s Conferencing Tables procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of conferencing tables. Conferencing tables are manufactured from wood and nonwood materials. Manufacturers have the ability to customize these products according to the buyer’s needs. This report excludes all other office furniture, such as credenzas, filing cabinets, chairs and drafting tables.
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.