Price growth is forecast to accelerate slightly as demand drivers grow at heightened rates and suppliers’ main input costs increase in concert
Los Angeles, CA (PRWEB) October 01, 2014
Industrial freezers have a buyer power score of 3.1 out of 5, which indicates moderate negotiating power for buyers. Industrial freezer users include food and beverage manufacturers, food service businesses, healthcare facilities and pharmaceutical and chemical manufacturers. As a result of these users' diversity, demand for industrial freezers increases with general economic growth. As such, rising industrial production, consumer spending and nonresidential construction have corresponded with increasing demand for industrial freezers. “Such demand growth has pressured prices upward at a moderate rate and slightly eroded purchasing power because prices have risen faster than inflation,” according to IBISWorld business research analyst, Hayden Shipp. Additionally, price growth is forecast to accelerate during the next three years as demand increases further and manufacturers' steel costs return to growth.
However, buyers have benefited from the nonvolatile nature of industrial freezer prices. For the past decade, prices have consistently risen at a low-to-medium rate each year. While buyers face increased base prices when they delay a purchase, nonvolatile pricing means that they do not incur major financial penalties based on purchase timing. As such, if buyers wait until a high-volume purchase is needed and take advantage of bulk costs, costs might reduce. Additionally, buyers benefit from the market's short lead time, which is helpful for buyers that urgently need new cold storage units to preserve inputs or finished goods. Also, the low bankruptcy risk of this market's suppliers improves the availability of support services and replacement parts for the duration of a unit's life, which ranges from 12 to 20 years.
“Buyers should note that during a unit's life-span, its purchase price represents a minor portion of its total cost of ownership,” says Shipp. Electricity is the largest component of total costs, which underscores the importance of considering energy use when purchasing an industrial freezer. In general, larger units use more energy, as do understocked units (i.e. less than two-thirds full). Finally, the growing market for used freezers gives buyers an opportunity to recoup some of a used unit's costs. Major vendors include Hussmann Corporation, Johnson Controls Inc. and The Manitowoc Company Inc. For more information, visit IBISWorld’s Industrial Freezers procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of industrial freezers. Industrial freezers include chest, upright cabinet, walk-in and blast freezers. Various manufacturers such as food and beverage producers, chemical manufacturers and pharmaceutical manufacturers use industrial freezers. They are also used in food service and healthcare. This market's suppliers include manufacturers and wholesalers. This report excludes ice-making equipment.
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.