Over the past three years, rising wages have increased costs for suppliers. In turn, suppliers raised product prices to combat the higher costs
Los Angeles, CA (PRWEB) June 09, 2014
The buyer power score for electrical safety devices is 3.5 out of 5, indicating moderate negotiation power for buyers. The electrical safety devices market is highly fragmented, with over 10,000 suppliers. Accordingly, market share concentration is very low. Accoridng to IBISWorld analyst Kevin Young, all electrical safety devices must be manufactured according to specifications set by the Underwriters Laboratories in order to be compatible with wiring, machinery and Occupational Safety and Health Administration (OSHA) regulations. Major suppliers of these products include ABB Ltd., Coleman Cable Inc. and Eaton Corporation. Since electrical safety devices are produced uniformly across manufacturers, buyers can easily compare homogenous product lines from various suppliers. This highly competitive market increases a buyer's ability to negotiate a lower price. Additionally, low switching costs and short buying lead times encourage customers to look to other suppliers to meet their needs. Generally, buyers of electrical safety devices do not enter into multiyear contracts with suppliers, giving the buyer still more freedom to switch suppliers.
However, some aspects of the electrical safety device market decrease buyer negotiating power. Prices for input materials, such as copper and silver, are highly volatile, which affects prices for electrical safety devices. In the event of increasing production costs, manufacturers pass on the increased costs to buyers in the form of higher prices, continues Young. Prices have risen over the past three years in the face of burgeoning demand trends from the construction sector, making negotiating more difficult for the buyer. As the economy rebounds, boosting manufacturing and construction activity, prices are estimated to continue rising alongside higher demand for these devices.
Still, electrical safety device prices have displayed remarkable stability throughout the past three years. Thus, buyers can budget for their electrical safety device needs with confidence. Buyers are advised to purchase products now because prices are expected to rise in the future. For more information, visit IBISWorld’s Electrical Safety Devices procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of electrical safety devices. These products include residual current devices (RCDs), isolating transformers, shuttered sockets, recessed sockets and shrouded plugs, insulated metal pins, transparent sockets and plugs, and four-way switched socket outlets. RCDs are the main product out of these devices. An RCD is an electrical wiring device that disconnects a circuit if it senses an excess flow of electricity. Protective wear for electricians is excluded from this report.
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.