Hydraulic hose and tube fitting prices are forecast to continue to grow, although at a slightly slower rate, in the three years to 2017 as growth in the industrial sector continues to rise and more new construction projects are undertaken.
Los Angeles, CA (PRWEB) January 10, 2015
Hydraulic hose and tube fittings have a buyer power score of 2.5 out of 5, which indicates that buyers have less negotiating power than suppliers. “Although buyers benefit from the ability to pit multiple suppliers against one another and establish long-term contracts, rising prices and a lack of substitute products ultimately lower buyer negotiating power,” says IBISWorld procurement analyst Scott Winters.
Although hydraulic hose and tube fittings are widely used and highly commoditized, there are no viable substitutes for these products. Consequently, buyers generate a steady source of demand for suppliers, dampening suppliers' motivation to negotiate on price. “In addition, some fittings are more commonly available than others, making it a challenge for some buyers to locate specialized fittings,” adds Winters. “A supplier that carries a rare or highly demanded fitting is very unlikely to negotiate a discounted price for that fitting.” Buyers should also be aware that some types of fittings require additional products to properly install. For example, crimp fittings require a crimping machine, and some fittings call for specialized pipe wrenches or torque wrenches. These additional costs have the potential to hurt a buyer's negotiating position.
However, buyers can use the high number of suppliers in the market as leverage in negotiations. The extensive distribution network of most suppliers allows buyers to compare a large number of price offers rather than negotiating with a single supplier. The top four suppliers in the market are Gates Corporation, Parker Hannifin Corporation, Eaton Corporation and W.W. Grainger. The most effective method of achieving a low price is to establish a multiyear contract. Not only does a contract lock in a low price and entice suppliers to include additional products at a discount, but it also outlines the types of fittings needed and the delivery location, which expedites the purchasing process for buyers. For more information, visit IBISWorld’s Hydraulic Hose & Tube Fittings procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of hydraulic hose and tube fittings, including couplings, adapters, tees, quick connect and quick disconnect fittings. Hydraulic hoses convey hydraulic fluid under high pressure. Hydraulic hose fittings are used to allow fluid to flow between hydraulic hoses, hydraulic pumps, pistons and motors. This report focuses on hydraulic hose and tube fittings used in industrial applications such as construction, mining and agricultural equipment. Fittings can be made from steel, brass and aluminum and are supplied by manufacturers, wholesalers and distributors. This report exclusively covers fittings for hydraulic hoses and tubes; it does not include the hoses or tubes themselves or fittings for any other application.
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.