Price growth will continue to be steady and predictable, thanks to less volatility in input prices and strong import competition.
Los Angeles, CA (PRWEB) August 13, 2014
Electrical cable has a buyer power score of 2.1 out of 5. This score indicates a mostly shared power balance when it comes to negotiating supply contracts, albeit with a slight advantage for suppliers.
Demand for electrical cable is tied to construction activity, particularly infrastructure, commercial, industrial and utilities building. Residential construction also fuels demand for electrical cable used to connect homes to high-speed internet and cable television networks. “During the past three years, the construction sector has exhibited strong growth, fueling demand and price increases for electrical cable, which has negatively impacted buyer power,” according to IBISWorld business research analyst Sean Windle.
The lack of viable substitute products also hurts buyer power. While electrical cables can be made with different materials (e.g. copper and aluminum), the viability of using cables made of different metal conductors varies depending on the application. Some applications might require copper, because it has superior conducting properties and is more resistant to corrosion.
“While buyers are disadvantaged by strong price growth and a lack of substitutes, low product specialization benefits buyers,” says Windle. Because the products produced and sold by different suppliers are fairly uniform across the market, vendors look to differentiate themselves based on other factors, such as price. Additionally, moderate market share concentration among suppliers means buyers have a large number of vendor options to choose from when sourcing electrical cable, including large-scale suppliers and small- and mid-sized companies. Additionally, strong import competition benefits buyers by spurring price competition and giving buyers more supplier options.
In the next three years, the construction sector's recovery is forecast to gain momentum and many input prices are poised to return to growth, driving up demand for electrical cable and accelerating price growth. While price growth will accelerate, strong import competition will keep price volatility low, thereby benefiting buyers. Major vendors include General Cable Technologies Corp., Encore Wire Corporation and CommScope Inc. For more information, visit IBISWorld’s Electrical Cable 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 assist buyers of electrical cable. Electrical cables include coaxial cable, halogen free cable, multicore cable and axial cable. Suppliers include manufacturers, wholesalers and retailers. This report does not include fiber optic cable or electrical wire.
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.