The average benchmark price of street sweeping vehicles is expected to decline during the past three years on the back of diminished local and state government investment
Los Angeles, CA (PRWEB) October 15, 2014
Street sweeping vehicles have a buyer power score of 3.6 out of 5, which indicates that buyers enjoy a slight advantage when it comes to procuring street sweeping vehicles and related goods and services.
“The falling price of street sweeping vehicles and the low volatility of these prices have been the biggest advantages for buyers during the past three years,” says IBISWorld business research analyst, Sean Windle. From 2011 to 2014, the average benchmark price of a street sweeping vehicle has fallen largely due to slowing demand. Local and state government agencies are the key buyers of street sweeping vehicles and, as such, demand is prone to fluctuations in local and state government investment. During the past three years, high unemployment has led to diminished tax revenue for municipal and state governments. As a result, demand for street sweeping vehicles has fallen during the past three years, fueling price declines. Lower demand and falling prices have bolstered buyer power.
Although falling prices and low price volatility have boosted buyer power, other factors have contributed to lowering buyer leverage in the negotiation process. For example, there are no real substitute products for street sweeping vehicles, which limits the selection of products and suppliers from which buyers can choose. High market share concentration among street sweeping vehicle manufacturers also limits the available pool of suppliers. “The production of these vehicles requires significant startup capital and the ability to build supply relationships with local and state government agencies and commercial street sweeping service providers,” says Windle. These barriers limit the number of vendors entering the market, which reduces the pool for buyers to choose from and hinders their negotiating power. Major vendors include Elgin Sweeper Company, Schwarze Industries Inc. and TYMCO Inc. For more information, visit IBISWorld’s Street Sweeping Vehicles procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of street sweeping vehicles, which are trucks equipped with tools that allow them to collect waste particles from the street. By collecting debris from the road, street sweeping vehicles improve the visual appeal of streets and parking areas and minimize the amount of pollutants drained into sewers and streams. They can be purchased from manufacturers or dealers. This report does not cover street cleaning services.
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.