Copper pipe and tube have been rising primarily due to the increasing demand from the construction sector
Los Angeles, CA (PRWEB) November 24, 2014
Copper pipes and tubes have a buyer power score of 3.2 out of 5. According to IBISWorld analyst Deonta Smith, the higher the score, the more leverage a buyer has during the negotiation process; therefore, this score signifies that buyers in this market have a medium level of power. Buyer power is positively influenced by low levels of product specialization and negatively affected by moderate market share concentration and a low availability of substitutes.
Benefiting buyer power is the low level of specialization; most products are uniform, readily available and can be used with nearly any job. Because products are rarely custom made or changed for buyer specifications, wholesalers compose the majority of copper pipe and tube suppliers. In recent years, manufacturers have gained market share through economies of scale, thus expanding a buyer's supplier options, continues Smith.
However, despite the expanding supplier base, buyers still have a relatively limited selection of suppliers because most suppliers, such as Olin Corporation, Mueller Industries Inc. and Freeport-McMoRan Copper & Gold, operate solely on a regional level, thus limiting their reach. Therefore, any buyer planning to procure copper pipes and tubes is generally limited to selecting from the suppliers that operate in its local market, which reduces buyer power. Likewise, the lack of substitutes for copper pipes and tubes further narrows the buyer's scope of possibilities. If a buyer does not wish to use copper pipe or tube, only cross-linked polyethylene tubes (PEX tubing), which are considered less reliable, may serve as an alternative.
This market has a high level of competition that benefits buyers. Companies looking to procure copper pipes and tubes can leverage the competition across wholesalers and manufacturers when negotiating. Likewise, considering vendors outside their local region to satisfy their needs would further spur competition among suppliers. These strategies also expand the range of suppliers from which a buyer can choose, thus improving buyer power. For more information, visit IBISWorld’s copper pipes and tubes procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of copper pipes and tubes. Manufacturers produce copper tubes, which are small and flexible with precise outside diameters, and pipes, which are larger in size, that are used to transport fluids.
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.