Prices of metal boring machines are anticipated to continue increasing, but volatility will subside
Los Angeles, CA (PRWEB) December 17, 2014
Metal boring machines have a buyer power score of 3.1 out of 5. This score is reflective of moderate negotiating power for buyers, which stems from low price volatility, moderate risk in the supply chain and low market share concentration. Current vendors in the market include Powermatic and Technox. Although the price of steel, a key input, has been highly volatile during the past three years, the average price of metal boring machines is expected to grow at a moderate annualized rate. Buyer power is further aided by the machines' slow depreciation, which reduces their risk as an investment.
Furthermore, adds IBISWorld research analyst Agiimaa Kruchkin, “high-quality metal boring machines can achieve a significant value on the resale market, favoring buyers.” Buyer power has been challenged to an extent due to rebounding demand from industrial production and manufacturing on the back of economic recovery, in turn driving average prices up.
Vendors of metal boring machines face moderate financial risk due to steady downstream demand. In addition, the supply chain poses medium level of risk, mainly stemming from volatility in the price of steel. “Typically, input price hikes get passed down the supply chain, eating into vendors’ margins,” says Kruchkin, “which then restricts buyer power due to limited leverage in negotiations.” Nevertheless, repeat customers can secure more favorable terms, especially on high-volume purchases.
In the three years to 2017, IBISWorld estimates that the average price for metal boring machines will continue growing at moderate rate. This price growth and moderate price volatility will stem from a lack of major price jumps for steel inputs, facilitating buyer power in the coming years. For more information, visit IBISWorld’s Metal Boring Machines procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of metal boring machines. Types of metal boring machines include horizontal boring machines, jig boring machines, metal broaching machines, internal broaching machines, surface broaching machines and vertical boring machines. Metal boring and broaching are processes used to remove material during which a cast or drilled hole is further enlarged. Specifically, metal boring involves enlarging a hole to achieve greater diameter accuracy and correct the defects. Broaching is a metal removal process that uses a toothed cutting tool, often required to make unique parts. Both processes are used when precision machining is required.
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.