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Snow Plows Procurement Category Market Research Report from IBISWorld has Been Updated
  • USA - English


News provided by

IBISWorld Inc.

Oct 13, 2014, 04:00 ET

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Los Angeles, CA (PRWEB) October 13, 2014 -- Snow plows have a buyer power score of 3.0, which indicates that buyers enjoy somewhat of an advantage when procuring snow plows and related equipment and services.

Although demand for snow plows has increased, price growth has been weak over the past three years due to rising import competition and declines in steel prices

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Buyers have been benefiting from weak price growth the past three years. Although demand for snow plows has increased, price growth has been subdued. In the three years to 2014, the average price for snow plows is expected to be increasing at an annualized rate of 0.8%. Import competition has been intensifying price competition the past few years. “Manufacturers in China and Mexico enjoy more relaxed labor and environmental regulations than their US counterparts and, therefore, can offer lower prices to customers. This fact has further intensified price competition and kept price growth in check,” according to IBISWorld business research analyst Sean Windle. Falling steel prices have also limited snow plow price growth by lowering suppliers' production costs.

Other factors boosting buyer power include low product specialization and low switching costs. Snow plows are mass-produced for various vehicle and outdoor applications and, as such, have a low level of product specialization. “Low product specialization also helps keep switching costs low because buyers can easily find comparable products from a range of different suppliers,” Windle says.

One of the biggest factors hurting buyer power is high market share concentration. Snow plows are available via manufacturers, wholesalers and retailers. While market share concentration is low among wholesalers, market share concentration among manufacturers is very high, with the top four suppliers (Douglas Dynamics, Northern Star Industries, Caterpillar Inc. and Meyer Products) accounting for the overwhelming majority of revenue from snow plow manufacturing.

A low level of substitutes also diminishes buyer power. Snow plows are attached to vehicles and used to clear roadways and other large areas of snow. As such, products with similar purposes, such as standalone snow-blowing machines, are limited in their ability to serve as substitutes for snow plows. For more information, visit IBISWorld’s Snow Plows procurement category market research report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of snow plows, which are mounted onto vehicles and used for removing ice and snow from surfaces outdoors. They can be purchased from manufacturers, wholesalers or retailers. This report does not include snow blowers or snow chains.

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.

Gavin Smith, IBISWorld Inc., +1 (310) 866-5042, [email protected]

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