Los Angeles, CA (PRWEB) August 28, 2014
Injection molding machines have a buyer power score of 2.8 out of 5. This score indicates that neither buyers nor suppliers have a distinct advantage with regard to negotiating prices. Suppliers have been raising the price of injection molding machines during the three years to 2014, largely due to rising demand, says IBISWorld analyst Jeffrey Cohen. Still, buyers benefit from low price volatility.
During the past three years, high price driver volatility has harmed buyer power. This trend is due in large part to the high volatility in the price of key inputs (i.e. steel and aluminum) that go into injection molding machines. Although overall price volatility has been low during the past three years, high volatility in price drivers harms buyer power because it leads to more difficulty on the buyer's behalf when budgeting for purchases, continues Cohen. Other factors that harm buyer power include a low availability of substitutes and high market share concentration. A low availability of substitutes limits buyers ability to leverage alternatives to receive lower prices during negotiations. Because the top four suppliers generate much of the market’s revenue, high market share concentration weakens buyer power as there is limited price competition. Consequently, buyers are left with a reduced ability to negotiate prices with the top suppliers. Some market suppliers include Husky, Mitsubishi Heavy Industries Ltd. and Onex.
Because the price volatility for injection molding machines is low, this is beneficial for buyers because machines price will not significantly increase on annual basis, making it easier for buyers to budget their purchases. Regardless, buyers are encouraged to enter into long-term contracts to prevent against the effects of rising input costs. For more information, visit IBISWorld’s Injection Molding Machines procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of injection molding machines. Injection molding machines are used to heat a molding material to a fluid state and then inject it into a mold. An injection molding machine consists of two main parts, an injection unit and a clamping unit. This report includes hydraulic injection molding machines, electric injection molding machines, mechanical injection molding machines and hybrid injection molding machines. This report does not include rubber-working machines or extrusion machines.
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.