Although prices are expected to continue rising in line with increasing demand and input costs, lower supply chain volatility will moderate price growth
Los Angeles, California (PRWEB) January 15, 2015
Industrial brakes have a buyer power score of 2.7 out of 5, indicating reduced negotiation power for buyers. The primary driver behind this lack of buyer power is high demand for industrial brakes. According to IBISWorld market research analyst, Jeffrey Cohen, "With sales on the rise, suppliers have minimal incentive to offer competitive prices, discounts or special offers for industrial brakes." The buyer's individual application also significantly affects buyer power. Buyers with unique or particularly challenging applications will experience lower buyer power, while standardized applications afford buyers more power. Fortunately, low price volatility reduces market risks for buyers by decreasing the chance of sudden price spikes. Major vendors in the market include Eaton Corporation, Emerson Electric Company and Altra Industrial Motion Inc.
Demand for industrial equipment is on the rise, as indicated by the steady improvement of the industrial production index and the value of construction. "As demand for industrial equipment grows, sales of industrial brakes also rise, which gives suppliers leverage to raise prices," says Cohen. Buyer power is also lowered by the lack of substitutes in the market, which reduces buyers' ability to leverage other options to obtain lower prices during negotiations. Furthermore, buyers with specialized applications may face a lack of qualified suppliers in their area, forcing them to either use a less qualified supplier or incur high shipping and transportation costs by using a distant supplier.
However, there are still a few market traits that buyers can take advantage of when purchasing industrial brakes. The cost of switching between market suppliers is moderate but involves mostly time and effort, keeping overall costs low. Stable wages and slightly rising overhead costs among suppliers, meanwhile, improve supplier stability and reduce the occurrence of price spikes or supply interruptions. Supplier stability, in turn, allows buyers to confidently enter into long-term contracts with their chosen suppliers, affording them favorable pricing terms. Overall, buyers should purchase industrial brakes now to lock in current prices. For more information, visit IBISWorld’s Industrial Brakes procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of industrial brakes. Industrial braking systems are start-stop systems used in conjunction with hoisting and pulley systems for mining, construction, drilling rigs and elevators as well as stage, speaker or scoreboard systems. There are several types of industrial brakes, including drum brakes, disc brakes and electromagnetic brakes. The primary suppliers of industrial brakes are manufacturers. Key buyers of industrial brakes include mining firms, train manufacturers, forklift and conveyor manufacturers and oil drilling and gas extraction firms. This report does not include industrial clutches or brake-clutch combinations.
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.