Declining input costs have reduced operating costs for suppliers during the past three years, causing the price of metal rolling machines to slightly decline.
Los Angeles, CA (PRWEB) June 06, 2014
Metal rolling machines have a buyer power score of 3.1 out of 5. This score represents heightened buyer power as the price of rolling machines has declined during the past three years, says IBISWorld analyst Ian Buchanan. However, highly volatile prices and the high level of specialization involved in metal rolling machines weaken buyer power slightly.
Major suppliers in this market include Butech Bliss, Delta Steel Technologies and Howick Ltd. As key inputs to the production of steel, such as iron ore and coking coal, decrease in cost, the world price of steel is expected to decline at an annualized rate of 4.9% in the three years to 2014. As steel is a significant input cost to suppliers of metal rolling machines, the declining price of steel during this period is expected to lower operating costs for suppliers. As such, the price of metal rolling machines is expected to drop at an annualized rate of 0.7% during the three years to 2014. Although the price of steel has declined significantly during this period, growing demand for these machines has prevented the price from decreasing more rapidly, continues Buchanan. Despite the decreasing prices, buyers have been negatively affected by high price volatility. Over the past three years, prices have undergone extreme fluctuations. For example, price grew roughly 13.0% in 2011, but declined 2.9% in 2013. Price volatility hurts buyers because it prevents them from making precise cost estimations and budgets.
Metal rolling machines are typically customized to meet the specifics of the buyer's operations. Manufacturers modify base models or produce a custom metal rolling machine from scratch for buyers. Furthermore, buyers that are purchasing used machines must find a supplier that has a machine in their inventory that meets their exact requirements. As such, the high level of specialization involved for each buyer reduces the number of available suppliers that can provide a machine that meets the required specifications, leading to diminished buying power. For more information, visit IBISWorld’s Metal Rolling Machines procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of metal rolling machines, which shape metal stock as it passes through one or more sets of rolls. Rolling machines include roll benders, which produce cylindrical products from metal sheets or bars. Rolling machines also include rolling mills, such as roll formers. Roll formers perform continuous bending operations as sheet metal passes through sets of rolls mounted on consecutive stands. Each set bends the stock incrementally until the desired cross-section profile is reached. Common applications for roll forming include automobile parts, construction, office furniture, store fixtures and conveying systems.
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.