Growth from key demand drivers has allowed for steady pricing during the period
Los Angeles, CA (PRWEB) October 05, 2014
Truck trailers have a buyer power score of 2.1 out of 5, which reflects a lack of power for buyers and a distinct advantage for suppliers. The market is highly concentrated, and a lack of competition in a market can devastate buyer power and lead to artificially high prices, says IBISWorld analyst Scott Winters. On the other hand, the vast network of trailer distributors gives buyers leverage to pit their local suppliers against each other. The abundance of distributors gives buyers the opportunity to compare prices and encourages special discounts and promotions. This factor also helps transfer some power back to buyers but leaves the majority of pricing power in the hands of suppliers, including players such as Hyundai Translead, Great Dane Limited Partnership and Utility Trailers.
Also contributing to the low buyer power score is the unfavorable price trend in the truck trailers market. Trailer prices have been increasing during the past three years following very slow growth during the recession when trailer sales and demand were low. As prices increase with no indication of slowing, buyers are unable to take advantage of market conditions to secure a better price, continues Winters. As such, buyers are advised to make purchases of truck trailers now to avoid higher prices in the future. In the current market environment, it can be very advantageous for buyers to establish a supply contract. A contract enhances buyer power by protecting against price increases and streamlining the buying process using an RFP.
Trailers are highly standardized across multiple brands, making it easy to find a high-quality trailer. Moreover, if an off-the-shelf trailer does not meet a buyer's needs, customized solutions are available from many manufacturers. There are even manufacturers that specialize in building custom trailers. Overall, current market trends favor suppliers, but with the right negotiating strategy, buyers have enough leverage to secure a favorable deal on a truck trailer. For more information, visit IBISWorld’s Truck Trailers procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of truck trailers. Truck trailers come in a variety of designs and are available from a vast network of manufacturers, dealers and retailers. The most common types of trailers are dry van trailers, refrigerated trailers (reefers), platform trailers, tanker trailers, curtain-side trailers and dump trailers. This report focuses on the purchase of new and used trailers for commercial freight trucks and passenger trucks and does not include recreational vehicles, caravans or camper trailers. This report also excludes replacement parts, components and trailer accessories.
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.