Prices for electrical safety devices are estimated to increase as demand from construction companies and manufacturers continues to grow.
Los Angeles, CA (PRWEB) January 19, 2015
The buyer power score for electrical safety devices is 3.7 out of 5, indicating moderate negotiation power for buyers. The electrical safety devices market is highly fragmented; accordingly, market share concentration is very low. All electrical safety devices must be manufactured according to specifications set by Underwriters Laboratories in order to be compatible with wiring, machinery and Occupational Safety and Health Administration (OSHA) regulations. “Electrical safety devices are produced uniformly across manufacturers, which allows buyers to easily compare product lines from various suppliers,” says IBISWorld procurement analyst Kevin Young. “The highly competitive nature of this market increases buyers' ability to negotiate lower prices.” Additionally, low switching costs and short buying lead times encourage customers to look to other suppliers to meet their needs. Generally, buyers of electrical safety devices do not enter into multiyear contracts with suppliers, giving the buyer still more freedom to switch suppliers.
However, some aspects of the electrical safety device market decrease buyer negotiation power. Prices for input materials, such as copper and silver, are highly volatile, which affects prices for electrical safety devices. “In the event that production costs rise, manufacturers pass these increased costs to buyers in the form of higher prices,” adds Young. Prices have risen during the past three years in the face of burgeoning demand trends from the construction sector, making negotiating more difficult for buyers. As the economy rebounds and boosts manufacturing and construction activity, prices are estimated to continue rising alongside higher demand for these devices.
Still, electrical safety device prices have displayed remarkable stability during the past three years. Thus, buyers can budget for their electrical safety device needs with confidence. Buyers are advised to purchase products now to avoid future price growth. For more information, visit IBISWorld’s Electrical Safety Devices procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of electrical safety devices, including residual current devices (RCDs), isolating transformers, shuttered sockets, recessed sockets and shrouded plugs, insulated metal pins, transparent sockets and plugs and four-way switched socket outlets. Of these products, RCDs are the main devices. An RCD is an electrical wiring device that disconnects a circuit if it senses an excess flow of electricity. This report excludes protective wear for electricians.
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
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