Input prices are anticipated to increase over the next three years; likewise, demand is anticipated to further rise, leading to higher product prices.
Los Angeles, CA (PRWEB) September 13, 2014
Aerial lifts have a buyer power score of 3.0 out of 5. This score signifies that buyers in the aerial lift market have a medium level of power during the negotiation process. Buyers derive power primarily from low price volatility and a high availability of imported aerial lifts. “The market's high level of concentration and low level of substitutes, however, negatively impact buyer power,” says IBISWorld procurement analyst Deonta Smith.
While prices for aerial lifts have trended upward during the past three years, the increase has been marginal and price volatility has been extremely low. “Buyers benefit from a low level of price volatility because it means they can take time in making their purchasing decisions without fear of major price spikes in the near future,” adds Smith. “Favorable price trends and low volatility boost buyer power for aerial lift products.” During the next three years, however, prices are forecast to rise at a faster pace as input cost increase on the back of rising steel prices.
Higher availability of imported aerial lifts has also proved beneficial to buyers because imported products are generally far less expensive than their domestic counterparts and have helped keep average prices down over the past three years.
Conversely, a high level of market share concentration and low availability of substitutes limit buyers' negotiating power. Although a wide range of vendors offers aerial lifts, only a few, including JLG and Terex Corporation, dominate the market, providing large-scale distributors with leverage to control prices. Additionally, the lack of substitutes for aerial lifts narrows the buyer's scope of possibilities. If a buyer is not satisfied with its distributor, procuring products from a manufacturer may be the only alternative available. The lack of alternatives to aerial lifts reduces a buyer's leverage during the negotiation process. For more information, visit IBISWorld’s Aerial Lifts procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of aerial lifts. Aerial lifts are elevated work platforms that include boom lifts, scissor lifts, vertical mast lifts and personal portable lifts. They may be stationary, towed or mounted on trucks. Suppliers within this sector generally sell aerial lifts to contractors, rental firms and home improvement professionals.
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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