Rising prices will be driven by growth in industrial production, international trade and the number of businesses
Los Angeles, CA (PRWEB) May 03, 2014
Buyers of pallet trucks have a buyer power score of 3.2 out of 5. Buyer negotiation power has declined over the three years to 2013. The industrial production, international trade and the number of businesses in the United States play a role in determining pallet truck price movements. Over the past three years, these drivers experienced moderate growth rates due to a rebounding economy, which contributed to greater demand for material handling equipment and led to higher market prices. Increasing prices have reduced buyer negotiating power over the period. “Prices are forecast to grow at a slightly higher rate in the next three years as material handling and logistics services will be in greater demand,” says IBISWorld business research analyst Hayk Muradyan.
Because steel is a key input, rising steel prices have also driven price growth for pallet trucks. Although many suppliers have been able to mitigate input volatility through contractual arrangements with locked prices, the average supplier passed portions of their input costs increases onto buyers through higher product prices over the past three years. “In addition, moderate product specialization has made it slightly harder for buyers to find suppliers that meet their specific product requirements, which has lowered buyer negotiating power,” says Muradyan.
However, buyer power remains strong because of low market share concentration and significant competition among market suppliers. Suppliers are increasingly engaging in price-based competition to win new customers and maintain or gain market share. Buyers have also benefited from a low price volatility environment, making future inventory planning easier and reducing major price fluctuations. Buyers can obtain favorable deals with suppliers by buying large quantities of pallet trucks at a per-item discount, and by locking in prices under rental agreements. Buyers with relatively smaller purchasing needs can also benefit from engaging in rental agreements to reduce large upfront costs and maintain a stable level of cash flow. Major vendors include Mitsubishi Electric, Toyota Industries Corporation, Kion Group AG and UniCarriers Americas Corporation. For more information, visit IBISWorld’s Pallet Trucks procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of pallet trucks, which are a type of industrial truck that is used to lift and move pallets. Pallet trucks are also called pallet jacks and can either be manual or powered. Pallet trucks have hydraulic jacks that raise and force a load upward to move cargo. This report does not include carts, dollies, wagons or pushcarts.
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.