Electrical Wire Procurement Category Market Research Report Now Available from IBISWorld

Share Article

Buyers of electrical wire have limited negotiating power with suppliers due to steady upward price growth; however, low volatility in prices benefits buyers by allowing them to budget for future expenses more accurately. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of electrical wire to its growing collection of procurement category market research reports.

IBISWorld procurement market research
Price growth is forecast to accelerate in the next three years, as demand from the construction sector continues to accelerate

Electrical wire has a buyer power score of 2.9 out of 5. “This score indicates a shared power balance between buyers and suppliers when it comes to negotiating supply agreements,” says IBISWorld procurement analysts Sean Windle. Electrical wire provides power to single-family homes, apartment communities, dormitories, office towers, retail centers, schools, hospitals, power plants and other residential and nonresidential buildings and structures. As such, demand for electrical wire is tied heavily to the level of construction activity in the United States. While building activity plummeted during the economic downturn, post-recession growth in residential and nonresidential building industries has begun to pick up. Still, building activity has yet to full recovery, which has resulted in steady upward growth in prices. While prices are rising, steady growth benefits buyers by allowing them to better plan and budget future expenses.

Low market share concentration among electrical wire suppliers also boosts buyer power. Buyers have a plethora of options from which to choose when sourcing electrical wire products, and the low market share concentration helps promote price competition among suppliers vying for business. Low market share concentration and competition from imports have helped keep price growth relatively in check, despite increasing demand from the construction sector. Furthermore, a low level of product specialization helps to fuel more suppliers into the market. Major suppliers include Southwire Company, Superior Essex Inc., General Cable Corporation and Encore Wire Corporation.

Factors limiting buyer power include the lack of any substitute products, and the threat of rising input costs, particularly copper. Buyers also face significant total ownership expenses, primarily from the cost to install electrical wiring. Despite these setbacks, buyers are encouraged to purchase electrical wire now, or lock in current prices, because increasing domestic demand is expected to accelerate price growth in the next three years.

For more information, visit IBISWorld’s Electrical Wire 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 assist buyers of electrical wire. Electrical wiring is used to provide power to buildings and structures and is also referred to as building wiring. This report does not include electrical cable.

Executive Summary

Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast

Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Quality Control

Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs

Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements

Negotiation Questions

Buyer Power Factors

Key Statistics

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.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
IBISWorld Inc.
+1 (310) 866-5042
Email >
Visit website