Rising demand and input costs are expected to push up prices for strobe and warning lights at a faster rate in the next three years, despite anticipated increases in import penetration
Los Angeles, California (PRWEB) September 19, 2014
Strobe and warning lights have a buyer power score of 3.2 out of 5. This score reflects a mixture of favorable and unfavorable conditions in the market that have been influencing buyer power over the three years to 2014. IBISWorld market research analyst, Keiko Cadby, says, "During the period, strengthening business activity across major industries and rising input costs have lifted prices." Buyers in various economic sectors (particularly mining, industrial, construction and manufacturing) have revived their production capacity and construction projects. As buyers have increasingly started expanding their facilities and vehicles to keep up with rising production levels, demand for strobe and warning lights has picked up, and prices have followed suit. Over the three years to 2017, continued growth in construction will facilitate demand for strobe and warning lights, while rising raw material prices will prompt prices of strobe and warning lights to accelerate. However, rising import penetration will warrant strong domestic price competition and mitigate price surges for strobe and warning lights.
Despite rising product prices, low market share concentration and switching costs help leverage the buyer's negotiation power. Cadby says, "While merger and acquisition (M&A) activity has been on the rise for manufacturers in the strobe and warning lights market, there are abundant wholesale and retail suppliers for buyers to choose from." Major vendors in the market include United Technologies Corporation, Acuity Brands and Cooper Industries. Furthermore, the plethora of suppliers can easily meet buyer needs and provide buyers with a stronger hand in price negotiation to make it easier to switch suppliers without fear of incurring significant financial losses.
On the other hand, the lack of substitutes and strict regulatory requirements diminish buyer power. Buyers must carefully consider the environmental conditions and functional purposes of their strobe and warning light purchases. Inadequate quality, resilience or function can lead to fines and potentially dangerous situations. Buyers can mitigate these risks by evaluating their strobe and warning light needs and ensuring that qualified suppliers are prevetted before pursuing contract negotiations. For more information, visit IBISWorld’s Strobe & Warning Lights procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of strobe and warning lights. These products emit high-intensity light in short-duration pulses, rotating flashes or an uninterrupted beam or beacon. Because they easily catch the attention of people nearby, strobe and warning lights are often used in potentially dangerous situations or incorporated in emergency lighting. This report does not include flashlights, security lighting or general-use light fixtures.
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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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.