Price growth is forecast to accelerate as domestic demand picks up and metal prices, particularly steel, return to growth.
Los Angeles, CA (PRWEB) August 31, 2014
Gas pressure regulators have a buyer power score of 3.3 out of 5. This score indicates an advantage for buyers when negotiating supply agreements.
Low market share concentration benefits buyers. Of the 2,247 gas pressure regulator suppliers operating in the United States, no single vendor commands an overwhelming amount of market revenue. While several large-scale, multinational manufacturers operate in this market (e.g. Pentair Ltd. and Flowserve Corporation), gas pressure regulators account for a very small share of these companies' operations. As such, buyers have a number of supplier options from which to choose when sourcing these products, which fosters price competition. “Additionally, the moderate level of product specialization further spurs price competition, because suppliers that produce similar products and serve similar markets look to differentiate themselves based on price,” according to IBISWorld business research analyst Sean Windle.
High import penetration also contributes to price competition and gives buyers additional supplier options in an already fragmented and price competitive market. Manufacturers in China and other low-cost producing countries can make comparable goods at a fraction of the cost of US suppliers, and subsequently pass cost savings down to buyers in the form of lower prices. Import competition has forced many US suppliers to lower labor and production costs in an effort to provide more competitive prices. “Low market share concentration, high import penetration and lower labor and purchase costs have helped keep price volatility low, despite the postrecession surge in domestic demand,” says Windle.
The primary disadvantage for buyers is the lack of viable substitutes. Gas pressure regulators serve a specific function within a gas system, and, as such, buyers must purchase these products to safely and efficiently reduce gas pressure for their end-use application. Nonetheless, the lack of substitutes does not significantly hamper buyer power, because there are many different types of gas pressure regulators, and the supplier market for these products is highly price competitive. For more information, visit IBISWorld’s Gas Pressure Regulators procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of gas pressure regulators. A gas pressure regulator is a type of valve that cuts off incoming pressure at a specified rate so that gases can be safely and efficiently used for various end-use applications. Gas pressure regulators may be used in industrial, construction and medical equipment applications. Suppliers include manufacturers and wholesalers.
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.