Heat Exchangers Procurement Category Market Research Report from IBISWorld has Been Updated
Los Angeles, CA (PRWEB) January 17, 2015 -- Heat exchangers have a buyer power score of 3.1 out of 5. This score reflects buyers' moderate ability to negotiate lower prices, which is largely due to the product's widespread availability and the price-competitive nature of the heat exchanger market. “However, recent demand growth, mixed with price fluctuations for key inputs has slightly reduced buyer negotiating power,” according to IBISWorld business research analyst Jordan Weinstein.
As the economy recovered in the three years to 2014, demand for heat exchangers from the food, manufacturing and industrial sectors mounted, leading to price growth. Although input costs fell during the three years to 2014, suppliers are forecast to encounter a rise in input costs, such as the price of steel, in the next three years. As demand continues to rise in the three years to 2017, suppliers will be able to pass on increased input costs to buyers in the form of higher prices for heat exchangers.
Fortunately for buyers, the rise in demand and input costs for heat exchangers will not lead to drastic price increases. Anticipated growth in imports will allow buyers to purchase lower-priced machinery from abroad, and will put additional pricing pressure on domestic suppliers. “As import penetration boosts competition, suppliers that drastically raise prices will lose clients to vendors offering the same machinery at a lower price,” says Weinstein.
Buyers also benefit from the widespread availability of heat exchangers and strong competition in the market. IBISWorld estimates that there are more than 260 vendors operating in the heat exchangers market in 2014, which is a healthy number of capable suppliers to satisfy most buyers' needs. Major vendors include SPX Corporation, Modine Manufacturing Company and Alfa Laval AB. For more information, visit IBISWorld’s Heat Exchangers procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to help buyers of heat exchangers. Heat exchangers are used to efficiently transfer heat from one medium to another without mixing the two substances. The most common heat exchangers are tube and plate exchangers. Heat exchangers are used in a variety of products such as car radiators, refrigerators, air conditioners and space heaters. This report will focus on commercial size heat exchangers used in heating, ventilation and air-conditioning (HVAC) systems. This report does not include furnaces, heat pumps, solar heating units or circulation heaters.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics
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.
Gavin Smith, IBISWorld Inc., +1 (310) 866-5042, [email protected]
Share this article