An expected rise in interest rates and slight deceleration in domestic oil and natural gas production will curb crawler crane price growth during the period
Los Angeles, CA (PRWEB) November 27, 2014
The crawler crane market has a buyer power score of 3.4 out of 5, which indicates market conditions that are currently favorable for buyers. However, buyer power has been somewhat subdued due to moderate market share concentration and product specialization. The rising trend of merger and acquisition activity has propelled market share concentration upward, which has had deterred buyer power. “Moreover, for buyers requiring customized crawler cranes, the pool of available suppliers decreases further, which hinders buyer negotiation power,” according to IBISWorld business research analyst, Kiera Outlaw.
However, buyers have benefited from other market characteristics working in their favor. Firstly, the high availability of substitutes has dramatically boosted buyer power. Although tower and rough terrain cranes might not always be interchangeable, the availability of crawler crane rentals can significantly reduce costs for buyers, especially those conducting one-off projects. However, general contractors can find crawler crane rentals more expensive in the end due to the volume of large-scale construction projects they undertake on an annual basis. Moderate supply chain risk has also been beneficial for buyers. With the predominant raw material being steel, buyers do face some risk of steel price fluctuation due to the material's reliance on global demand; however, supply shortage risks are often less risky for buyers. Moreover, suppliers tend to produce a limited number of new crawler cranes due to their size and cost of production.
Buyers have also benefited from low price volatility during the period, which has helped to increase buyer confidence that crawler crane prices will not fluctuate suddenly or unexpectedly during the period; this low volatility allows for greater budget control and overall purchasing power. Even still, crawler crane prices are forecast to continue trending upward. “Consequently, buyers are expected to experience a slight decline in power through 2017,” says Outlaw. Major vendors include Terex Corporation, Liebherr Group and The Manitowoc Company, Inc. For more information, visit IBISWorld’s Crawler Cranes procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of new or used crawler cranes. Crawler cranes are cranes that are mounted on tracks, called crawlers, that enable the crane to easily move around a work site. The crawler crane is able to carry heavy loads of up to several thousand tons as it moves around the site. Prior to being moved to a new location, the crawler crane must be dissembled. This report excludes other types of lifting equipment and accessories such as tower cranes.
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.