Price growth for security wire fencing is expected to accelerate as building activity picks up
Los Angeles, CA (PRWEB) October 24, 2014
Security wire fencing has a buyer power score of 2.7. This score indicates that suppliers have a slight advantage in the market. Strong price growth over the past three years has been hurting buyer power. In particular, higher levels of nonresidential and residential building activity have been increasing demand for security wire fencing and fueling strong price gains. In the three years to 2014, the average price for security wire fencing has been increasing at an annualized rate of 2.5%, even with lower steel prices and competition from lower-cost imports. “Because of strong price growth, buyers are encouraged to lock in current prices and make purchases now because stronger domestic demand and higher steel prices over the next three years are expected to accelerate price growth even further,” Says IBISWorld research analyst Sean Windle.
Also giving suppliers an edge is the fact that there are no great substitutes for security wire fencing. “While wood and brick can technically be used in fencing applications,” adds Windle, “these materials do not provide the same degree of deterrence as barbed wire and other security wire.”
On the buyer’s side, one advantage is that market share concentration among suppliers is low. Security wire fencing is available through a number of manufacturers, wholesalers and retailers, none of which command an overwhelming majority of market share. Furthermore, the standardized nature of security wire fencing means that buyers can find comparable products across a number of different suppliers, including overseas manufacturers. Suppliers in countries like China and Mexico (which combined account for more than half of all imported security wire fencing) benefit from more relaxed labor and environmental regulations. This factor allows importers to produce comparable goods at a lower cost and pass the savings to buyers in the form of lower prices. Low market share concentration and competition with imports has increased price competition among US suppliers. Current US suppliers include Merchant Metals, Leggett & Platt, Home Depot and Ace Hardware. For more information, visit IBISWorld’s Security Wire Fencing procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of security wire fencing, which is barbed wire, razor wire and other steel-based wire used to provide a physical and psychological barrier against human entry to a property. Vendors include manufacturers, wholesalers and retailers.
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
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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.