The price of septic tanks has been rising in the past three years due primarily to increased demand and rising input costs.
Los Angeles, CA (PRWEB) July 29, 2014
Septic tanks have a buyer power score of 3.1 out of 5. This score reflects a buyer's moderate ability to negotiate lower pricing as a result of the large number of suppliers, the product's widespread availability and the price-competitive nature of the septic tank market, says IBISWorld analyst Jordan Weinstein. IBISWorld estimates that there are more than 400 vendors, which provides buyers with a substantial number of supplier options. However, recent demand growth and rising costs for key inputs have marginally reduced buyer negotiating power.
In the three years to 2014, the average price of septic tanks has grown slightly due to a rise in key input costs, such as concrete and plastic. As a result, the selling price for septic tanks grew as suppliers passed on a portion of their increased costs to buyers. Growth in production costs is expected to continue in the three years to 2017 and consequently increase the price of septic tanks, continues Weinstein. Suppliers are also expected to experience growth from key demand drivers, such as industrial production, corporate profit and the number of businesses, over the three years to 2017. This demand growth is anticipated to contribute to the rise in septic tank prices.
Fortunately for buyers, the rise in production costs and demand for septic tanks is not expected to lead to significant price increases in the years to come. 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. Examples of market suppliers are Chart Industries, Harsco Corporation and Loomis Tank Centers.
In addition, the low degree of specialization for septic tanks has given way to a wide variety of suppliers that are capable of satisfying specific buyer requirements. Overall, conditions are moderately favorable for buyers and are forecast to remain unchanged over the next three years. For more information, visit IBISWorld’s Septic Tanks procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of septic tanks. Septic tanks are devices that collect and decompose sewage waste through bacterial activity. Manufacturers produce septic tanks by cutting, forming and joining heavy-gauge metals, plastics or concrete. The main types of septic tanks are underground and above-ground units. This report discusses the septic tank specifically and does not include septic tank systems or other plumbing 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.