Demand for hazardous waste container supplies are anticipated to increase over the next three years; In line with growing utility hazmat storage regulations, buyers will be forced to properly store waste
Los Angeles, CA (PRWEB) May 22, 2014
Hazardous waste containers have a buyer power score of 3.4 out of 5. This score signifies that buyers in the hazardous waste container market have a medium level of power. “Low levels of product specialization and market share concentration positively affect buyer power, while the low availability of substitutes limits buyer power,” says IBISWorld procurement analyst Deonta Smith.
Because many vendors of hazardous waste containers operate on a national level, buyers will have access to a number of wholesalers and manufacturers that best suit their needs; this wide selection increases buyer power. While wholesalers do make up the majority of suppliers, manufacturers have gained significant market share by expanding their reach, thus increasing the buyer's options. “However,” says Smith, “because some buyers enter into long-term contractual agreements with only one industrial supplies provider, it is difficult for them to switch firms without incurring a loss.”
Moreover, the lack of substitutes for hazardous waste containers further narrows the buyer's scope of possibilities. If a buyer is not satisfied with the wholesaler firm that supplies their geographic location, buying directly from the original equipment manufacturer may be available as an alternative. Leaning toward a manufacturer can help buyers obtain leverage by creating competition during the negotiation process. A further impetus for buyer power is the low level of specialization of hazardous waste containers. Buyers can purchase hazardous waste containers from suppliers located within their operating region and obtain transportation discounts. However, seeking out a large-scale supplier to satisfy their needs would spur competition among suppliers, which expands the range of suppliers from which a buyer can choose, thus improving buyer power. Major suppliers in this market include W.W. Grainger Inc., Airgas Inc., MSC Industrial Direct Co. Inc. and United Stationers Inc.
For more information, visit IBISWorld’s Hazardous Waste Containers procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of hazardous waste containers, such as pails, drums and totes (used to hold or transport pharmaceutical waste). These containers are leak resistant, and most have features that make them more durable than a standard waste container, such as locking floor carts for stability and mobility and absorbent pads for liquid leaks. This report excludes hazardous waste storage units and prefabricated hazardous waste storage buildings.
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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