Rising import activity has limited price growth for auxiliary generators.
Los Angeles, CA (PRWEB) April 30, 2014
Auxiliary Generators have a buyer power score of 3.0 out of 5. This score indicates a mixed power balance between buyers and suppliers, with neither party commanding an overwhelming amount of leverage when it comes to negotiating supply agreements.
Over the past three years, the price of auxiliary generators has been rising thanks to a postrecession pickup in demand in industrial production and nonresidential building activity. New buildings, such as hospitals, power plants and industrial manufacturing facilities, spur demand for auxiliary generators, which are used to provide backup, emergency power for these and other structures. “Also diminishing buyer power is the limited availability of substitute products,” says IBISWorld research analyst Sean Windle. “Portable generators and inverters, while providing a reasonable alternative for limited residential situations, are not equipped to handle the large power requirements of commercial and industrial applications.”
Despite steady price growth and higher demand over the past three years, and despite the absence of any reasonable substitute products, “buyers enjoy a range of favorable negotiating conditions,” Windle says. “First, market share concentration among the supplier base is low, giving buyers a variety of options from which to choose. These options include manufacturers, wholesalers and retailers.” Current major suppliers include Generac Power Systems, ABB Ltd., General Electric Company, Cummins Inc. and Emerson Electric Co. In addition to more supplier options, rising imports have brought more comparable, lower-price foreign goods into the US market. Not only have increasing imports given buyers another supplier choice, it has constrained price growth among US vendors, which now have to compete with lower-cost imports. Although the pace of price growth is projected to pick up in the next three years, rising imports will largely keep this growth in check. This stable growth enables buyers to better plan and budget future expenses. For more information, visit IBISWorld’s Auxiliary Generators procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of auxiliary generators. Auxiliary generators are used as an emergency power supply, and to store energy. This report includes auxiliary generators that run off propane, natural gas, diesel or renewable energy sources; however, it does not include portable generators.
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
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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.