Prices have risen slightly in response to demand growth stemming from increases in the value of construction and the number of businesses.
Los Angeles, CA (PRWEB) December 16, 2014
The market for portable lamps is characterized by a low availability of substitutes, low market concentration and a favorable pricing environment. These factors, along with others, contribute to a power score of 3.7 out of 5 for portable lamp buyers. According to IBISWorld analyst Kayley Freshman-Caffrey, this level of buyer power suggests that buyers have a slightly higher amount of leverage during negotiations than sellers do.
The lack of viable product alternatives is the primary factor plaguing buyers in this market. Flashlights and permanent lighting fixtures are the main substitutes for portable lamps, but these items do not suit the majority of portable lamp uses. For example, neither flashlights nor permanent lighting fixtures can aid car repairmen that require hands-free lighting under the hoods of the vehicles in their shops. The low availability of substitutes reduces the extent to which product alternatives can help buyers achieve lower lamp prices.
Well-known suppliers in this market include Ace Hardware Corporation, The Home Depot and Lowe's Companies Inc. Luckily, low market concentration deters suppliers from radically boosting their prices by fostering competition among supplying firms. This competition pressures suppliers to limit their annual price increases to keep their customers from seeking another source for their portable lamps. Aside from keeping prices low, market fragmentation also aids buyers by constraining yearly price changes, which helps keep price volatility low, continues Freshman-Caffrey. Low price volatility empowers buyers to more accurately budget for the cost of their lamp purchases without having to worry that average prices will spike or dip after their order has been placed.
Low price volatility is one of multiple factors that make the current pricing environment favorable for buyers. Recent and forecast price trends also bolster buyer power in that they reflect only incremental increases in price. As a result of these stable pricing trends, buyers can purchase their lamps when needed rather than timing their orders by expected changes in price. Overall, the positive effects of the favorable pricing environment and low market concentration balance out the negative impacts of the low availability of substitutes to give buyers a moderate level of negotiation power. For more information, visit IBISWorld’s Portable Lamps procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of portable lamps. Portable lamps, also referred to as work lights, are lights that can easily be placed in various positions to provide optimal lighting and are commonly used in construction and industrial settings. These lamps are either battery powered or require an outlet to function. This report excludes desk lamps, floor lamps and flashlights.
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.