Water Trucks Procurement Category Market Research Report from IBISWorld has Been Updated

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In the three years to 2014, the price of water trucks is anticipated to grow moderately, primarily on the back of steady demand from downstream construction and mining industries. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Water Trucks in its growing collection of procurement category market research reports.

IBISWorld procurement market research
The price of water trucks is projected to continue rising over the three years to 2017, further fueled by rebounding demand from downstream buyers, as well as the anticipated recovery of input costs.

The market for water trucks has a buyer power score of 3.1 out of 5, which is reflective of moderate purchasing power for buyers. Buyer negotiation power is primarily aided by low switching costs, the fragmented nature of the market and low vendor financial risk. “At the same time, the low availability of substitutes and high level of product specialization limit buyer power,” says IBISWorld procurement analyst Agiimaa Kruchkin.

During the three years to 2014, the price of water trucks is anticipated to rise moderately, slightly hampering buyer power. However, the fragmented nature of the market fuels price-based competition, moderating the increase in product prices. Caterpillar Inc., which is the largest vendor in the market, is an exception in the fragmented market, maintaining its dominance due to its inventory of water trucks designed for heavy-duty applications in the mining, construction, oil drilling and gas extraction sectors. In addition, mounting import penetration, encouraged by the strengthening value of the US dollar, has intensified the competition in this market, offsetting the impact from rising prices. “Furthermore, in lieu of accepting high per-unit prices from one supplier, buyers can switch suppliers with ease due to the ad-hoc nature of these purchases,” adds Kruchkin. “The relatively low level of vendor financial risk in this market has further bolstered buyer power, facilitating the switching process.”

Despite the moderately favorable purchasing conditions in the market, buyers should be aware that some factors limit their negotiation power. Water truck rental is the only viable substitute to purchasing, and although the cost savings are substantial for buyers with a short-term need for these trucks, they should keep in mind the additional costs that include fuel surcharges, tire damage and excess wear, among other items. In addition, the lack of substitutes leaves it largely up to vendors' discretion to dictate prices, hampering buyer power. Likewise, depending on the level of customization required for the truck, buying lead time can extend significantly, undermining buyer power. On a related note, the option to customize a water truck comes at an additional cost, which also compromises buyer negotiation power. For more information, visit IBISWorld’s Water Trucks procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of water trucks, which are used to store and transport potable and nonpotable water. Water trucks are used in a variety of downstream markets, including construction, mining, oil drilling, gas extraction, entertainment, firefighting and irrigation projects. Suppliers of water trucks include manufacturers and distributors. This report does not cover dump trucks, cargo trucks, sewage and sludge trucks, delivery trucks and concrete trucks. This report also excludes water truck rental services.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

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.

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Gavin Smith
IBISWorld Inc.
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