A rise in the number of workers requiring uniforms and a return in demand for key commodities, such as steel, will cause prices to accelerate.
Los Angeles, CA (PRWEB) July 22, 2014
The industrial washing machine market has a buyer power score of 2.9 out of 5, reflecting market conditions that are currently favorable for buyers. Demand for industrial washing machines has increased during the three years to 2014 due to rising aggregate private investment and corporate profit, in addition to falling national unemployment. “However, waning demand for steel, a key input in industrial washing machine production, helped offset strong price growth during the period, benefiting buyer power,” says IBISWorld business research analyst Kiera Outlaw.
In addition to buyers increasingly investing in equipment, buyer power has also been supported by medium profitability among suppliers. Supplier profitability has been on the rise during the past three years, indicating that buyers have experienced a slight increase in power during the negotiation process. Buyer power has also benefited from low supply chain risk, which indicates that buyers are not at risk of sudden price shocks due to higher prices further up the supply chain. However, steel, which is a key input, has displayed high volatility during the period. “Although volatility has been high, steel prices fell sharply during the period due to soft global demand,” says Outlaw.
However, the low availability of substitutes has significantly hampered buyer power, as have high switching costs and the expected swift acceleration in prices in the three years to 2017. Despite this, current price volatility has been low and allowed buyers to secure their industrial washing machine needs and financing arrangements without risk of sudden price increases. Although price volatility is expected to remain low in the three years to 2017, prices are forecast to accelerate at rates experienced prior to the recession. As a result, buyers should secure their industrial washing machine needs now rather than later. Major vendors include Alliance Laundry Holdings LLC, B&C Technology, Girbau Industrial and Pellerin Milnor Corporation. For more information, visit IBISWorld’s Industrial Washing Machines procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of industrial washing machines. Industrial washing machines allow buyers to clean large volumes of laundry and linen, such as required by hospitals, hotels and prisons; these machines can process up to 1,000 pounds of textiles at once. Due to the large liquid-chemical storage barrels attached to them, industrial washing machines use precise metering systems to add the required detergents and additives to the correct cycles of the wash. These machines are available through manufacturers due to the size and scale of the machinery. This report excludes other industrial laundering equipment, such as dryers, as well as commercial and household laundering equipment.
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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