Los Angeles, CA (PRWEB) May 16, 2014
Hydraulic hose fittings carry a buyer power score of 2.5 out of 5. “A score of 2.5 suggests a lack of negotiating power for buyers in favor of suppliers. Increasing prices and a lack of substitute products detracts from buyer power, while the ability to pit multiple suppliers against each other and establish a long-term contract enhances buyer power when purchasing hydraulic fittings,” says IBISWorld business research analyst Scott Winters.
Although hydraulic hose fittings are widely used and highly commoditized, there are no viable substitutes in the market. This gives suppliers a steady source of demand from buyers, dampening their motivation to negotiate on price. In addition, some fittings are more commonly available than others, sometimes making it a challenge to locate a particular fitting. A supplier that carries a rare or highly demanded fitting is very unlikely to negotiate a lower price for that fitting. “Buyers should also be aware that some types of fittings require additional products to properly install,” says Winters. Crimp fittings, for example, require a crimping machine, and some fittings require specialized pipe wrenches or torque wrenches. These additional costs have the potential to hurt a buyer's negotiating position.
However, buyers can use the high number of suppliers in the market to boost their leverage in negotiations. The extensive distribution network of most suppliers facilitates negotiation by allowing buyers to compare a large number of price offers to get discounts. The most effective method of achieving a low price is to establish a contract. Not only does a contract lock in a low price for buyers and entice suppliers to include additional products at a discount, contracts also outline the types of fittings needed and the delivery location, which saves time for suppliers in the long run. It can be difficult to gain negotiating leverage in the hydraulic fittings market, but with the correct strategy buyers can gain an upper hand. Major vendors include Applied Industrial Technologies Inc., Brennan Industries Inc., Eaton Corporation and Fastenal Company. For more information, visit IBISWorld’s Hydraulic Hose & Tube Fittings procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of hydraulic hose and tube fittings such as couplings, adapters, tees, quick connect and quick disconnect fittings. Hydraulic hoses convey hydraulic fluid under high pressure. Hydraulic hose fittings are used to connect hydraulic hoses to hydraulic pumps, pistons and motors while allowing fluid to flow between these components. This report focuses on hydraulic fittings used in industrial applications such as construction, mining and agricultural equipment. Hydraulic fittings can be made from steel, brass and aluminum and are supplied by manufacturers, wholesalers and distributors. This report exclusively covers fittings for hydraulic hoses and tubes, it does not include the hoses or tubes themselves or fittings for any other application.
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.