As the economy continues to gain full steam and production activity strengthens, demand for back and joint protective equipment is expected to pick up, which will encourage suppliers to raise the price
Los Angeles, CA (PRWEB) October 06, 2014
Back and joint protective equipment has a buyer power score of 3.2 out of 5. This score reflects a mix of favorable and hindering conditions in the market that have influenced buyer negotiation power during the three years to 2014. “Strengthening business activity across major downstream markets and increasing input costs have underpinned price growth during the period,” according to IBISWorld business research analyst Anna Son. As buyers in several sectors, particularly manufacturing and construction, have slowly gained traction, they have bolstered their operations. Because most employers are required to supply adequate body protection for their workers operating in hazardous environments, demand for protective equipment has picked up in line with expanding production activity and workforce. During the next three years, surging business activity and rising raw material prices are projected to facilitate demand for protective equipment, which will prompt suppliers to adjust product prices upward. However, mounting market competition and import penetration will help keep prices in check and thus buoy buyer negotiation power.
Despite rising product prices, low product specialization and switching costs support buyer negotiation power. There are multiple types of existing protective equipment in the market that are designed to protect against various physical and health risks. While there are some exceptions among specialized products, most personal safety products are homogenous across suppliers when comparing products by class. “Therefore, low specialization and an abundance of suppliers that can easily meet buyer needs provide buyers with the upper hand in price negotiation and make it easier to switch suppliers,” says Son.
On the other hand, the lack of substitutes and rising market share concentration can pose a threat to buyer power. During the past three years, market concentration has increased as large suppliers have acquired smaller competitors, and thus have gained greater control of market prices. Although there are some ways in which buyers can reduce the need of using back and joint protective equipment, there are no products that can effectively provide the same product functionality. Major vendors include Uline Inc., W.W. Grainger Inc. and Allegro Industries. For more information, visit IBISWorld’s Back & Joint Protective Equipment procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of back supports and braces, including lumbar protectors. Such devices are used to treat or prevent back injuries and include backrests, lumbar cushions and back belts to support lifting heavy objects. This report excludes surgical implants and orthopedic products such as hip and knee replacement systems.
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.