In the three years to 2017, the price of heat detectors will climb with rising demand trends, although temperate price changes in plastics and resin will mitigate overall price growth
Los Angeles, CA (PRWEB) December 03, 2014
Heat detectors have a buyer power score of 3.9 out of 5. This score indicates significant negotiation power for buyers. Heat detection products are mass-produced and homogenous between suppliers. “Buyers benefit from low market concentration, which gives them many suppliers to choose from,” according to IBISWorld business research analyst, Kevin Young. The growing availability of inexpensive imports from low-wage countries helps to keep prices low by pressuring domestic manufacturers to limit price increases to compete. Furthermore, heat detector price changes have been temperate and stable despite significant volatility in some upstream inputs and downstream demand. Stable pricing allows buyers to budget for heat detector purchases with confidence because stark price increases are unlikely.
The cost of ownership for heat detectors is low, allowing buyers to install products with no risk of incurring great cost throughout product lifespan. Switching costs are also low, allowing buyers to easily seek and engage with new suppliers in the event that the product or arrangement from their current supplier becomes unsatisfactory. Buyers are advised to investigate the possibility of bundling purchases of heat detectors with other goods required for the buyer's business.
Despite these factors, some market trends have been detrimental to buyer negotiation power. Rising input costs slightly decreased buyer power during the past three years as suppliers increased prices to compensate. “This trend is expected to continue in the three years to 2017 as heightened investor confidence and demand for manufactured goods further boost demand for upstream inputs and these hikes are passed down to buyers,” says Young. The cost of plastics and resin depends heavily on the price of crude oil, a highly volatile input subject to political strife and fluctuating supply. Sudden shocks in the price of oil can significantly increase costs for manufacturers, and in turn, heat detector prices for buyers. Major vendors include The Home Depot, Lowe’s Companies Inc. and Honeywell International Inc. For more information, visit IBISWorld’s Heat Detectors procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of heat detectors. Heat detectors are used to sense heat from combustion. Heat detectors are sometimes used in areas where smoke is not a concern, such as in kitchens and automotive shops. The two types of heat detecting devices are fixed temperature detectors and rate-of-rise detectors.
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.