The price of heat exchangers has risen due to expanding demand during economic recovery
Los Angeles, CA (PRWEB) November 20, 2014
Heat exchangers have a buyer power score of 3.1 out of 5. This score reflects a buyer's moderate ability to negotiate lower prices, which is largely due to the product's widespread availability and the price-competitive nature of the heat exchanger market. However, according to IBISworld research analyst Jordan Weinstein, “recent demand growth mixed with price fluctuations for key inputs have slightly reduced buyer negotiating power.”
As the economy recovers in the three years to 2014, the price of heat exchangers has increased largely due to a rise in demand, specifically from the food and beverage manufacturing sector. The recovering economy has led to restored demand from other key buyers, such as the industrial sector. In the coming years, suppliers are also expected to see a rise in input costs, such as the price of steel, says Weinstein. Consequently, the price for heat exchangers will likely rise because suppliers typically pass off a portion of their increased input costs to buyers.
Fortunately for buyers, the rise in demand and input costs for heat exchangers will not lead to significant price increases. An expected rise in imports will allow buyers to purchase less expensive machinery from abroad, which will put additional pricing pressure on domestic suppliers. As suppliers face pricing pressure due to growing competition, suppliers that drastically raise price as demand rises will lose clients to vendors offering the same machinery at a lower price. Current major vendors include Alfa Laval AB, GEA, SPC Corp. and Xylem Inc. Buyer power is further aided by the widespread availability of heat exchangers and strong competition in the market. For more information, visit IBISWorld’s Heat Exchangers procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of heat exchangers. Heat exchangers are used to efficiently transfer heat from one medium to another without mixing the two substances. The most common heat exchangers are tube and plate exchangers. Heat exchangers are used in a variety of products such as car radiators, refrigerators, air conditioners and space heaters. This report will focus on commercial size heat exchangers used in heating, ventilation and air-conditioning (HVAC) systems. This report does not include furnaces, heat pumps, solar heating units or circulation heaters.
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.