The average price for sealing tools is forecast to continue rising over the three years to 2017 as the cost of production increases and demand continues to rise.
Los Angeles, CA (PRWEB) November 11, 2014
Sealing tools have a buyer power score of 3.2 out of 5. This score reflects a buyer's moderate ability to negotiate lower prices, due largely to the high number of suppliers and standardized nature of sealing tools. However, recent demand growth and price increases for key inputs during the past three years have slightly reduced buyer negotiating power. “In the three years to 2014, the price of sealing tools increased largely due to a rise in demand stemming from the growth in the value of construction and spending on home improvements,” says IBISWorld procurement analyst Jordan Weinstein. The recovering economy has led to increased demand for construction and repairs throughout the United States. Sealing tools are required to complete a portion of the projects, and thus increase demand for sealing tools. Suppliers have also seen a rise in input costs, such as plastic, aluminum and rubber over the same period, which has led to increased pricing for sealing tools. Suppliers typically pass off a portion of these increases to buyers in the form of higher prices.
Fortunately for buyers, the rise in demand for sealing tools and mixed growth of some key input costs will not lead to substantial price growth. “Because suppliers face pricing pressure due to heavy competition, suppliers that drastically raise prices due to increased demand will lose clients to those vendors offering the same standardized products at a lower cost,” adds Weinstein.
Price aside, buyer power is aided by the low market share concentration and high level of competition among sealing tool suppliers. Such competition is enhanced by the large number of sealing tool suppliers and low switching costs for buyers. In addition, the commoditized nature of sealing tools has led to a wide variety of suppliers capable of satisfying specific buyer requirements. These conditions are favorable for buyers of sealing tools and will remain relatively unchanged in the next three years. For more information, visit IBISWorld’s Sealing Tools procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of sealing tools make informed purchasing decisions. Sealing tools are used in a variety of ways such as applying sealing or bonding agents, removing sealing agent residue from prior applications and mixing sealing agents for their intended use. The sealing tools discussed in this report include caulking guns, putty knifes, scrapers and mixers.
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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