Los Angeles, CA (PRWEB) May 29, 2014
The procurement of rivet products has a buyer power score of 4.2 out of 5.0. This market's buyer power score shows that suppliers are flexible with their prices and buyers have greater ability to negotiate favorable prices and terms. The top suppliers of rivets in this market are large, multinational corporations that offer the best, most reliable products. According to IBISWorld procurement analyst Olawale Harrison, “Although manufacturers mark up quality rivets, the high level of substitutes and average level of product specialization places the market in the buyers favor.” There are several methods used to hold metal parts together, and rivets are one of them. Rivets can be used to fasten two pieces together, but its cost is much more expensive than methods such as bolting, brazing and welding due to the amount of labor required. As such, riveting as a fastening method is quickly declining overall, though it still remains important in the automotive and aerospace industries.
It is the performances of these and other key buying industries that influence price changes of rivets. Recent increases in demand from the industrial, automotive, construction and aerospace industries have placed upward pressure on prices, slightly eroding buyer power in the three years to 2013. “Rising metal prices during the period have only exacerbated this trend,” says Harrison. Suppliers have also struggled to forecast their input costs due to the volatility inherent in the procurement of ferrous and nonferrous metals. Nevertheless, the rate at which prices escalate is forecast to be milder over the coming years as steel prices cool, presenting a better negotiating environment for buyers.
A highly fragmented market and a standardization of its products have encouraged price-based competition among suppliers. The increasing number of low-priced imports has only intensified the pricing environment, with domestic manufacturers lowering baseline prices in order to stay competitive. The top four vendors in the market are Alcoa, Illinois Tool Works, Precision Castparts, and Stanley Black & Decker.
For more information, visit IBISWorld’s Rivets procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of rivets for industrial use. Rivets are a type of pin used to permanently fasten two pieces of material. There are many types of rivets, of which include blind rivets, crown-head rivets, flat head rivets, button head rivets and other rivets.
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.