Price growth is forecast to accelerate in the next three years due to strong demand and rising steel prices
Los Angeles, California (PRWEB) January 12, 2015
Industrial fasteners have a buyer score of 2.6 out of 5, which indicates a shared power balance between buyers and suppliers when negotiating supply agreements.
The biggest factors negatively affecting buyer power are rising prices and the low availability of substitute goods. According to IBISWorld market research analyst, Sean Windle, "Demand for industrial fasteners has increased significantly during the past three years, particularly from construction industries, oil and gas operators and automobile manufacturers." Strong demand from these and other buying industries has resulted in price growth during the past three years, which is forecast to accelerate heading into 2017. Other factors hurting buyer power include a low amount of substitutes, which means vendors in this market do not have to compete with suppliers in other markets.
Other market factors work in buyers' favor. "For example, low market share concentration is indicative of high levels of competition in the fastener market," says Windle. Buyers purchasing generic fasteners will have a wide variety of suppliers from which to choose, including lower-cost imports. Furthermore, buyers can pit different suppliers against one another to get the best price or value. Although buyers purchasing specialized industrial fasteners don't enjoy the same degree of leverage, they still usually have a large selection of suppliers from which to choose. Major vendors in the market include Alcoa Inc., Fastenal Company and Precision Castparts.
Buyers purchasing generic fasteners also benefit from low product specialization and low switching costs. Because generic fasteners are largely homogenous, buyers can switch suppliers without enduring significant expenses. Alternatively, buyers that have worked with a supplier to develop a customized fastener solution will endure higher switching costs due to the specialization that went into designing and manufacturing the fastener. For more information, visit IBISWorld’s Industrial Fasteners procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of metal fasteners for industrial use. These include generic fasteners such as screws, nails, rivets, nuts, bolts, washers, threaded or nonthreaded fasteners, precision fasteners and turned products that are customized for a particular industry, project or customer. This report does not include plastic fasteners or adhesives.
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.