During the three years to 2014, the price of metal drilling machines is expected to be increasing, primarily due to higher demand from key buyers
Los Angeles, CA (PRWEB) December 15, 2014
Metal drilling machines have a buyer power score of 3.3 out of 5. This score indicates that neither buyers nor suppliers have a distinct advantage with regard to negotiating prices. “Suppliers have been raising the price of metal drilling machines during the three years to 2014, largely due to rising demand,” according to IBISWorld business research analyst, Jeffrey Cohen. However, buyers benefit from low price volatility.
During the past three years, high price driver volatility has been harming buyer power. This trend is due in large part to high volatility in the price of key inputs (i.e. steel and aluminum) for metal drilling machines. Although overall price volatility has been low during the past three years, high volatility in price drivers harms buyer power because it leads to more difficulty on the buyer's behalf when budgeting for purchases. Other factors that harm buyer power include a low availability of substitutes, which limits buyers' ability to leverage alternatives to receive lower prices during negotiations.
Factors that benefit buyer negotiation power include low market share concentration, low product specialization and low switching costs. Low market share concentration throughout this market has been boosting buyer power because it reveals competitiveness among suppliers. This competitiveness forces suppliers to offer buyers more competitive product prices due to the fear of losing them to competitors. Low product specialization and switching costs benefit buyers because it enables them to shop around for drilling machines of a similar quality across a wide range of suppliers.
Overall, price volatility for metal drilling machines is low, which benefits buyers. “This is because machine prices will not significantly increase on an annual basis, making it easier for buyers to budget their purchases,” says Cohen. Regardless, buyers are encouraged to enter into long-term contracts to prevent against the effects of rising input costs. Major vendors include Alfra, Mollart Engineering Ltd. and Quickmill Inc. For more information, visit IBISWorld’s metal drilling machines procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of metal drilling machines, which include gang drilling machines, drill presses, deep hole drilling machines, rotary table drilling machines, gun drilling machines and bench drilling machines, among others.
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.