In the three years to 2017, prices are expected to continue to grow with sustained demand increases for market products
Los Angeles, California (PRWEB) February 15, 2015
Slip sheets have a buyer power score of 3.4 out of 5, which indicates slightly positive negotiating conditions for buyers. According to IBISWorld market research analyst, Jesse Chiang, "Buyers benefit strongly from low specialization and low switching costs." Buyers gain leverage from low specialization in the market because buyers can easily find numerous capable suppliers. There is low specialization in the market because slip sheets do not require particular machinery or expertise to manufacture or distribute. Thus, suppliers in the market must engage in significant competition to fight for business. Slip sheets also have low switching costs because market products are commoditized and differ minimally in terms of quality or functionality. Commoditization reduces the need for buyers to research new suppliers heavily and limits potential quality risks. Low switching costs benefit buyers because buyers can easily source from the supplier with the lowest prices without having to spend significantly to switch to the low price operator. This factor forces existing suppliers to either reduce prices or potentially lose business to a competitor with lower prices. Major vendors in the market include the Georgia-Pacific Corporation, the International Paper Company and Bemis Company Inc.
Buyers also benefit from the high availability of substitutes. "The high availability of substitutes gives buyers strong options to choose from if they do not find negotiating conditions to be favorable," says Chiang. Instead of slip sheets, buyers can choose to use pallets, which are the most common transportation platform in the market because they do not require additional lifting machinery attachments to use and are easy to procure.
Buyers have been hurt by significant price increases in the three years to 2014. Key inputs, such as plastic and paper, have increased during the three-year period, driving up production costs for suppliers. In addition, the growth in corporate profit and the number of businesses during the three-year period has boosted demand for slip sheets. Rising demand for market products allows suppliers to increase prices without risking significant declines in revenue. Worse yet, prices are expected to continue to climb in the three years to 2017. For more information, visit IBISWorld’s Slip Sheets procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of slip sheets. Slip sheets are thin pallet-sized sheets made of plastic, paperboard or fiberboard. The sheets are primarily used for commercial shipping purposes in place of traditional wooden pallets. This report does not include shipping pallets or paperboard or fiberboard that is not designed to be used strictly as slip sheets.
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.