Due to stabilizing material costs, service prices are anticipated to increase at a slower pace in the years to 2017
Los Angeles, CA (PRWEB) December 21, 2014
Industrial PVC pipes have a buyer power score of 2.9 out of 5. This score signifies that buyers in the market have a medium level of negotiating power. According to IBISWorld market research analyst, Deonta Smith, "Buyer power is negatively affected by rising demand and input prices, but positively influenced by low product specialization and low market share concentration."
In the three years to 2014, strengthening business activity across major downstream industries and rising input costs have boosted prices. Buyers in various economic sectors, particularly construction and manufacturing, have revived their production capacity and construction projects. "As buyers are upgrading new and existing facilities with more advanced piping systems, demand for industrial PVC pipes has picked up, causing prices to follow suit," says Smith. In the three years to 2017, surging construction activity will facilitate demand for industrial PVC pipes, while rising material prices will raise input costs, prompting prices to rise.
Still, low product specialization will prove beneficial to buyers. There are multiple types of industrial PVC pipes available in the market, including advanced rigid and flexible products. While there are some exceptions among specialized products, most industrial PVC pipes are homogenous across suppliers by class. As a result, low product specialization and a variety of viable suppliers provide buyers with a stronger hand in price negotiations. Major vendors in the market include ADS Pipe, Saudi Basic Industries Corporation and J-M Manufacturing Company Inc.
Likewise, low market share concentration and rising import penetration levels are anticipated to boost buyer power. Currently, wholesalers compose the majority of industrial PVC pipe suppliers. Moreover, industrial PVC pipe import levels have increased at an estimated annualized rate of 7.3% in the three years to 2014, further expanding supplier options. As a result, low market share concentration and rising import penetration levels positively impact buyer power, as they indicate high competition within the market and, thus, competitive product prices. For more information, visit IBISWorld’s Industrial PVC Pipes procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of industrial PVC (polyvinyl chloride) pipes. Industrial PVC pipe manufacturers develop PVC pipes used specifically for manufacturing processes, drain and sewage applications. This report excludes CPVC pipe products.
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.