The prices of metal shells and casings will continue their upward trajectory as legislative uncertainty remains in the marketplace
Los Angeles, CA (PRWEB) May 16, 2014
Metal shells and casings have a buyer power score of 2.9 out of 5. This score reflects negative pricing trends and indicates a low level of buyer bargaining power. Prices for metal shells and casings have shot upward over the past three years as a result of swelling demand brought forth by the fear of increased regulation on guns and ammunition. Legislative uncertainty over future gun laws is encouraging end users to stock up on guns and ammunition out of fear that it may be difficult to buy these products in the future, says market research firm IBISWorld. Guns, ammunition and related components are now flying off the shelves faster than manufacturers can create them. Manufacturers include Alliant Techsystems, Freedom Group, Hornady Manufacturing Co. and Olin Corp. Because of the high demand many suppliers have placed limits on the amount of shells buyers can order. Mounting demand for the product has placed upward pressure on prices, negatively affecting a buyer's purchasing power. Extremely volatile input prices and high regulation, coupled with a low availability of substitutes, have only served to exacerbate current buying conditions.
Further eroding buyer power in the market has been unpredictable metal prices over the three years to 2014. Unstable prices for copper and steel inputs have resulted in higher prices for metal shells and casings. According to IBISWorld, manufacturers view procuring their necessary inputs as a risk and have, therefore, attached risk premiums to their products as a way of protecting profit margins. In a market with demand as great as this, buyers are forced to accept price increases. Nevertheless, the level of input volatility is forecast to decrease over the next three years, presenting potential purchasing opportunities for buyers.
IBISWorld estimates that the rate at which prices increase will decelerate from 2014 to 2017; however, these forecasts may vary depending on how quickly legislative action against firearms and ammunition is taken. Further regulation against these products in the near future could adversely affect purchasing power, so buyers should keep a close eye on legislation pertaining to this market. For more information, visit IBISWorld’s Metal Shells and Casings 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 metal shells and casings. Metals shells and casings compose the outer layer of firearm ammunition. They can be purchased from sporting goods retailers and wholesalers. All bullets require some kind of shell or case, either metal or plastic. This report covers metal shells and casings, but not plastics shells and casings.
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.