In the three years to 2017, rising demand from government agencies and businesses is anticipated to promote further price growth
Los Angeles, California (PRWEB) November 23, 2014
Fire blankets have a buyer power score of 3.6 out of 5, indicating favorable negotiating conditions for buyers. Buyers gain significant power from low product specialization. IBISWorld market research analyst, Jordan Weinstein, says, "Manufacturing or distributing fire blankets does not require particular knowledge or skill, so fire blankets differ minimally across suppliers in terms of quality or functionality." As such, buyers can easily find multiple distributors that can meet their demand requirements. This factor allows buyers to easily switch suppliers without risking much in terms of quality, thereby leading to low switching costs in the market. The ease of switching suppliers offers buyers significant leverage when seeking lower prices. Buyers can either leverage the prices of an alternate supplier to obtain a lower price from their existing supplier, or buyers can simply switch to the supplier with the lower price. Major vendors in the market include WW Grainger, Global Equipment Company, Tyco and First Alert.
Because fire blankets are commoditized, buyers do not have to spend a lot of time finding another capable supplier. "Also, since products are homogenous, buyers do not have to spend time learning the features of a new product or integrating a new product in to emergency processes," says Weinstein. Buyers are hurt by the lack of viable substitutes for fire blankets. While buyers can purchase other fire safety products, buyers of fire blankets are typically purchasing fire blankets for specific fire emergencies where fire blankets would be more effective. For example, fires from kitchen pans or chemical fires cannot be handled with water, and fire extinguishers would create a mess and potentially contaminate the materials around it. Fire blankets are more effective for those types of fires. The lack of viable substitutes hurts buyers because it forces buyers to make purchases in a market where prices are rising. To manage rising prices, buyers should engage in contracts to lock in lower prices. For more information, visit IBISWorld’s Fire Blankets procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of fire blankets. Fire blankets are portable safety devices that are designed to extinguish small fires. Manufacturers, wholesalers and retailers distribute these goods. This report does not include welding blankets.
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.