Economic recovery has boosted demand for industrial trucks, but the price effects were subdued.
Los Angeles, CA (PRWEB) April 28, 2014
IBISWorld estimates a buyer power score of 3.0 out of 5 for industrial trucks. This moderate score reflects the mix of market factors and product characteristics resulting in a balance of power between buyers and suppliers, says IBISWorld analyst Scott Winters. Although stable demand and steadily increasing prices do not incentivize suppliers to negotiate on price, the wide availability of industrial trucks and high competition among suppliers boost buyer power.
Because industrial trucks are incredibly versatile, there is a lack of substitutes available to buyers. Suppliers are able to exploit this lack of substitutes by keeping prices steady and limiting negotiation. Additionally, volatile input costs introduce an element of risk to industrial truck suppliers, prompting them to keep prices firm, continues Winters. Demand for industrial trucks has been very stable historically though, and prices have continued to rise steadily despite the effect of the recession, which devastated many industrial markets.
While market conditions currently favor suppliers, the commoditization and widespread availability of industrial trucks places significant power in the hands of buyers. Most industrial wheel suppliers operate on a national or global scope, allowing buyers to compare prices from hundreds of suppliers to identify the best price. Also, buyers can easily pit multiple suppliers against each other in negotiations to gain deeper discounts. Added pressure from low-cost overseas manufacturers further boosts buyer power in the market. Finally, although input prices are typically volatile, major inputs such as steel and plastics are forecast to stabilize in the three years to 2017. The stable market outlook gives buyers flexibility in making their purchases. For more information, visit IBISWorld’s Industrial Trucks procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of industrial trucks. Industrial trucks include pushcarts, hand trucks, wagons, dollies, wheelbarrows, creepers, tilt trucks, platform trucks, pallet jacks and tow tractors. These products are typically used in retail, industrial and home improvement applications where material handling equipment is required. Suppliers of industrial trucks include manufacturers, distributors and retailers that operate in the material handling market. This report does not include lifting equipment, such as pallet lifts and forklifts, nor does it include industrial truck accessories. Rental and leasing options are not included in the report.
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.