Los Angeles, CA (PRWEB) August 11, 2014
Purchasers of circular saws have a buyer power score of 3.1 out of 5, which indicates moderate buyer power in the market. The low availability of direct substitutes and the moderate level of price driver volatility limit buyer power, says IBISWorld analyst Agiimaa Kruchkin. At the same time, the low level of switching costs, short buying lead time and the negligible vendor financial risk offset the negative impact on purchasing conditions, favoring buyers.
Demand for circular saws is contingent upon private nonresidential construction, industrial production and private investment in home improvements. The recent global economic crisis sent the number of construction projects on a precipitous decline, causing demand for circular saws and related tools to plummet. Nevertheless, the ongoing economic rebound has reversed the trends, fueling demand for circular saws from major downstream markets like construction, in turn, encouraging product price growth and eroding buyer power, continues Kruchkin. Concurrently, the cost of primary inputs, like steel, is expected to fall in the three years to 2014. As the world price of steel subsides, vendors such as Bosch AG, Hitachi Ltd. and Kawasaki will enjoy wider profit margins, offsetting the need to significantly raise prices. Moreover, the moderately fragmented nature of the market will continue to drive price-based competition. Likewise, the rising import penetration will boost price-based competition among vendors, providing some relief to buyers.
Volatile steel prices and fluctuating demand from downstream markets create an unpredictable purchasing environment that weakens buyer power. As a result, prices for equipment are often in flux as suppliers try to maintain profitability. Suppliers' challenge to protect returns severely limits their price flexibility; however, bulk purchases and supply agreements provide buyers with potential cost savings. For example, volume discounts can reduce per-unit prices, while supply agreements can shield buyers from future price spikes. In the three years to 2017, buyers should consider entering multiyear supply agreements with vendors, thus locking in current prices, due to the expected rebound in product price growth. For more information, visit IBISWorld’s Circular Saws procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of circular saws, which are blade or disc tools used for cutting various materials. Circular saws may be hand-held or table-mounted, and also vary between cordless and corded varieties. Typically, circular saws are used to cut wood, masonry, plastic or metal products. Vendors in this market supply related accessories, including blades, power cords, clamp sets, knobs and wrenches. This report excludes the rental of saws.
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.