Copper Pipes & Tubes Procurement Category Market Research Report from IBISWorld Has Been Updated

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Over the three years to 2014, copper pipe and tube prices have increased due to the rising demand from the construction sector; prices of copper pipes and tubes are projected to further increase in the three years to 2017 on the back of stronger demand, but its impact will be offset by weak input cost growth. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of copper pipes and tubes in its growing collection of procurement category market research reports.

IBISWorld industry market research
Copper pipe and tube have been rising primarily due to the increasing demand from the construction sector

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.

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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.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

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 or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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