Over the next three years, prices will continue to rise as demand for laboratory furniture rises with increased R&D activity and input costs.
Los Angeles, CA (PRWEB) August 23, 2014
Laboratory furniture has a buyer power score of 2.9 out of 5. This score reflects a mixed environment for buyers; as low market share concentration and low vendor financial risk allow for ample supplier options, moderate price volatility and the acceleration of price growth hinder buyer power. Additionally, high volatility in demand drivers and moderate product specialization affect the buyer power score negatively. “Shipping and installation costs are significant, so proximity to shipping locations may also limit a buyer's choices,” says IBISWorld procurement analyst Keiko Cadby.
Low market share concentration and low vendor financial risk allow buyers of laboratory furniture to choose from a variety of suppliers that have a high probability of remaining in business for years to come. Buyers should seek multiyear contracts to lock in prices, offset the effects of volatile of input costs, and protect themselves from gradual long-term increases in prices as the economy improves. “Volatile prices of raw material inputs and moderate product specialization work against the buyer because the resulting prices for necessary lab furniture are mostly out of their control,” adds Cadby. “However, buyers can mitigate these risks by securing prices through contracts, and by purchasing the most economical furniture that adheres to safety regulations.”
Buyers typically upgrade and replace laboratory furniture every five to 10 years, so the buying process does not happen frequently. However, a multiyear contract with a warranty and a modification and repair clause may be highly beneficial to the buyer if adjustments need to be performed on the products. Because shipping and installation costs are unpredictable due to volatile fuel prices, buyers are encouraged to set parameters for these prices to avoid a potentially significant increase in the total cost of ownership. For more information, visit IBISWorld’s Laboratory Furniture procurement category market research report page.
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IBISWorld Procurement Report Key Topics
The report is intended to assist buyers of laboratory furniture. These products include casework, such as lab benches, carts, tables, fixtures, cabinets and shelving. Suppliers of laboratory furniture include manufacturers, wholesalers and distributors. Key buyer institutions included in this report are schools, universities and research establishments that are engaged in laboratory education or use. Laboratory furniture is purchased on a stock or custom basis and may be assembled or unassembled. This report excludes laboratory equipment, such as fume hoods or refrigerators, as well as laboratory furniture rental services.
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.