Los Angeles, CA (PRWEB) August 12, 2014
Particleboard buyers have a buyer power score of 2.6 out of 5, reflecting even negotiating conditions for buyers and suppliers. Buyers benefit from low specialization and low market share concentration. According to IBISWorld procurement analyst Jesse Chiang, “low specialization in the market benefits buyers because it means there are many qualified suppliers in the market.” With numerous options to choose from, buyers can target suppliers based on price and level of service. Also, buyers can leverage the number of viable suppliers to seek lower prices, having the viable suppliers compete through pricing. In the absence of a dominating major player in the market, operators are engaged in high market competition. This has somewhat tempered the ability for some suppliers to increase prices.
“Buyers also benefit from low switching costs,” says Chiang. Products in the market are commoditized, requiring minimal set-up or learning costs when switching suppliers. Commoditized products also allow buyers to easily find viable suppliers, limiting potential research costs. Low switching costs benefit buyers because buyers can switch to a supplier with lower prices without risking quality or high costs. Despite such advantages, buyer power has been hurt by pricing conditions.
The price of particleboard has been increasing in the three years to 2014, driven by rising demand for market products and growing input costs. Demand for particleboard is growing because of rebounding public and private construction activity. Meanwhile key inputs, such as lumber, have been increasing in price as well. Suppliers have been able to increase prices because surging demand allows for suppliers to raise prices without risking significant shifts in demand, passing on rising input costs directly to buyers. These trends are expected to continue over the next three years, driving further price growth. Buyers should engage in contracts when possible to lock in lower prices. The largest vendors in the market are International Paper Company, Weyerhaeuser Company, Universal Forest Products and BlueLinx Corporation.
For more information, visit IBISWorld’s Particleboard 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 help buyers of particleboard. Particleboard is a type of engineered wood product made from small wood chips, saw dust or sawmill shavings that are bonded with resin. Particleboard is used in many construction applications and furniture manufacturing, and is supplied by manufacturers, wholesalers and large home improvement centers. This report does not include similar products such as plywood, medium-density fiberboard (MDF), oriented strand board (OSB) or hardboard.
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.