Caster and cart wheel prices are forecast to grow further over the next three years due to a combination of rising input costs and downstream demand.
Los Angeles, CA (PRWEB) August 16, 2014
The casters and cart wheels market exhibits a buyer power score of 3.7 out of 5, meaning that buyers have moderately high negotiation power in the market. There are thousands of vendors in the market, including a small number of manufacturers and a large number of wholesalers, which gives buyers many options to choose from. “Buyers benefit primarily from low market share concentration, high import penetration, limited product specialization and low switching costs,” says IBISWorld procurement analyst Cameron Roark. “Low market share concentration in the market forces vendors to compete on price, which boosts buyer power.” High import penetration also contributes to price-based competition between domestic vendors in the market and foreign caster suppliers. Limited specialization provides buyers with the ability to compare products easily between suppliers, and buyers face limited switching costs because most vendors offer similar products.
Despite competition placing downward pressure on prices of casters and cart wheels, rising downstream demand and higher input costs have been driving marginal price growth during the three years to 2014, slightly detracting from buyer negotiation power. While the average wholesaler in the market has experienced rising levels of profit, the market average profit margin has been dented by dramatically declining profit among caster manufacturers. “Declining profit places caster manufacturers at risk of bankruptcy, which raises vendor risk in the market,” adds Roark. “Nevertheless, price growth has been stable, meaning that buyers have not had to rush to enter into contracts in fear that prices will spike.”
Buyers can leverage the availability of many vendors, both domestic and foreign, to improve their rates. Buyers can typically negotiate with vendors to secure discount prices when purchasing in bulk, especially with wholesalers that have higher average profit margins. For more information, visit IBISWorld’s Casters & Cart Wheels procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of casters and cart wheels. Casters and cart wheels are wheels designed to be mounted to the bottom of a large object, enabling it to be mobile. This report focuses on the industrial applications of casters and cart wheels, including those mounted on material handling equipment such as industrial carts, dollies, platform trucks, service carts, cabinets, wagons and trollies. This report includes sliders and swivel plate wheels, but does not include brake systems, wheel bearings, tires, omnidirectional wheels, spherical wheels or wheelchair casters.
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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