The price of plastic pallets has been rising due to rebounding demand and higher plastic material and resin prices
Los Angeles, CA (PRWEB) July 09, 2014
Plastic pallets have a buyer power score of 3.3 out of 5. According to IBISWorld analyst Jordan Weinstein, this score reflects a buyer's moderate ability to negotiate lower pricing due to the large number of suppliers, the products low level of specialization, high availability of substitutes and the competitive nature of the plastic pallet market. However, recent demand growth and price fluctuations in key inputs have slightly reduced buyer negotiating power.
In the three years to 2014, the average price of plastic pallets has grown slightly due to a rise in demand, specifically from the industrial sector. The industrial sector serves as major demand segment for the plastic pallet market and the recovering economy has propelled the sectors to grow at a steady pace during the three years to 2014, continues Weinstein. Additionally, corporate profit and the number of businesses, both of which are tied to demand, have grown at steady rates from 2011 to 2014. Growth in these drivers has consequently increased demand for plastic pallets. Examples of market suppliers include Greystone Logistics LLC, One Way Solutions LLC and Orbis. Suppliers are also expected to experience price increases for key inputs, such as plastic materials and resin over the three years to 2017, as well. As a result, the selling price for plastic pallets will increase slightly as suppliers pass on a portion of their increased input costs to buyers.
Fortunately for buyers, the rise in production costs and demand plastic pallets in the next three years will not lead to significant price increases. Due to the high level of competition in the market, suppliers face strong pricing pressure. Suppliers that drastically raise prices will lose business to those vendors offering the same standardized products at a lower cost.
Price aside, buyer power is aided by the low market share concentration and high competition among suppliers. The large number of suppliers and low to moderate switching costs strengthens competition. In addition, the low degree of specialization of plastic pallets has led to a wide variety of suppliers that are capable of satisfying specific buyer requirements. These conditions are favorable for buyers and are expected to remain unchanged over the next three years. For more information, visit IBISWorld’s Plastic Pallets procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of plastic pallets. Pallets provide a stable platform to assist in the mechanical handling of stacked goods for fork lifts. Pallets are used for moving and storing freight, including assembling, storing, stacking, handling and transporting goods in a load. Pallets are built to fit a lift truck's forks between the levels of a platform for secure movement. These pallets may either be made from raw or recycled materials and aid in reducing shipping, handling and warehousing costs. Additionally, some plastic pallet suppliers may provide pooling (renting) services or pallet management services. This report does not include wood pallets paper, or pallets made from steel or composite materials such as oriented strand board and plywood.
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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