Rising input costs are forecast to push up the price of hydraulic presses
Los Angeles, CA (PRWEB) October 29, 2014
Hydraulic presses have a buyer score of 3.3 out of 5. According to IBISWorld analyst Aileen Weiss, “this score indicates moderate pricing trends, a low market share concentration and low switching costs.” Buyers have a slight edge in the purchasing process. Buyers can negotiate package deals that include accessories with the purchase of a hydraulic press. Buyers can also negotiate maintenance services to extend the useful life of a press and reduce the need to purchase new equipment. Buyers also benefit from the fractured market. Market share concentration is low due to high competition among suppliers; with no one supplier controlling the market and setting prices, buyers gain power and are better equipped to pit suppliers against one another. Switching costs are also low, reducing the likelihood that buyers will be locked in with any particular supplier. This market structure indicates that buyers will have a wide variety of suppliers to choose from. However, buyers do suffer from a low level of substitutes, limiting the number of realistic alternatives buyers may use instead of purchasing hydraulic presses.
“Hydraulic press suppliers have moderate supply chain risk, which helps ensure that buyers will have access to the required products,” says Weiss. Although hydraulic press manufacturers require critical inputs, such as steel, rubber and plastics, these commodities are available from many suppliers all over the world. At the same time, prices for these inputs have fluctuated significantly, which has contributed to similarly fluctuating hydraulic press prices.
In the three years to 2014, prices are expected to subside due to falling steel costs. Weakening steel prices have reduced manufacturing costs for suppliers; in turn, many vendors have passed these cost savings onto buyers in the form of lower prices. However, these cost savings are projected to disappear as steel prices are estimated to rise in the three years to 2017. With higher production costs, suppliers' profit margins will be hard hit and suppliers will be pressured to raise their prices to maintain profit margins. Therefore, buyers should consider purchasing hydraulic presses now to lock in lower prices before prices rise over the next three years. The largest vendors in the market are WW Grainger, Harbor Freight Tools, Actuant Corporation, and Northern Tool & Equipment Co.
For more information, visit IBISWorld’s Hydraulic Presses procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of hydraulic presses. Similar to mechanical levers, hydraulic presses create a compressive force, which is used for forging, clinching, molding, blanking, punching, deep drawing and metal forming operations. This report excludes other hydraulic machinery and equipment, such as hydraulic cylinders and pistons, hydraulic hoses and tube fittings, and hydraulic tools.
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.