The price of portable concrete mixers is forecast to rise further as the cost of production increases
Los Angeles, CA (PRWEB) June 13, 2014
Portable concrete mixers have a buyer power score of 3.3 out of 5. According to IBISWorld procurement analyst Erick Delgado, “this score is indicative of buyers' moderate degree of pricing power over vendors due to the product's widespread availability, the large number of vendors and the price-competitive nature of the portable concrete mixer market.” IBISWorld estimates that there are fewer than 20 manufacturers of portable concrete and mortar mixers that produce in the United States, all of which are engaged in intense price-based competition to secure market share. Despite the relatively low number of manufacturers in this market, there are a significant number of secondary vendors (e.g. wholesalers and retailers), which provides buyers with a substantial number of sourcing options.
“Despite price-based competition among vendors, growing demand from downstream markets has provided manufacturers with the flexibility to increase their prices,” says Delgado. Nonresidential construction and spending on home improvements serve as major demand segments for the portable concrete mixer market, and the recent rise in consumer confidence has propelled both sectors to experience strong and stable growth. Continued growth in these sectors is anticipated to result in increased demand for portable mixers, putting upward pressure on price over the three years to 2017. Moreover, the rising cost of key inputs, such as steel and plastic, will force manufacturers to pass on a portion of their increased costs to the buyer. Fortunately for buyers, the rise in production costs and demand for portable mixers will not result in significant price increases.
Volatility in input costs over the past three years has put a great deal of supply chain risk on vendors, particularly manufacturers. Fluctuating input costs have forced vendors to absorb higher costs, contributing to a medium degree of vendor financial risk. Nonetheless, as the construction market continues to strengthen, demand for portable mixers is anticipated to rise, alleviating financial stress on vendors and boosting profit margins. As a result, buyers can expect to be more secure in negotiating with vendors over the next three years. The top four vendors in this market are The Home Depot, Lowe's Companies Inc., Toro Company, and Crown Construction Equipment
For more information, visit IBISWorld’s Portable Concrete Mixers 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 concrete and mortar mixers designed for small volume applications. Portable mixers are steel or polyethylene drums that mix concrete or mortar ingredients into a workable consistency. This report includes towable and nontowable (e.g. pedestal-style or wheelbarrow-style) mixers that can either be gasoline, diesel or electric powered. This report excludes the procurement of cement trucks and other masonry tools, as well as renting portable mixers.
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.