Air Filters Procurement Category Market Research Report from IBISWorld Has Been Updated

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During the three years to 2017, rising input costs and strengthening demand are forecast to increase air filter prices; thus, growing input costs in the presence of moderate competition allow vendors to pass some of these rising costs onto buyers, hurting buyer negotiation power. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Air Filters in its growing collection of procurement category market research reports.

IBISWorld procurement market research
As key input costs rise and demand continues to mount from construction activity and industrial production in the three years to 2017, prices will rise at a faster rate

Air filters have a buyer power score of 2.9 out of 5, reflecting moderate buyer negotiating power. Overall, recent demand growth has weakened buyer negotiating power. “However, buyers benefit from the large number of suppliers, a low level of product specialization, moderate competition among suppliers and low switching costs,” according to IBISWorld business research analyst Jordan Weinstein.

The moderate level of market share concentration slightly restricts buyer negotiation power. The two main manufacturers in this market, 3M Company and Honeywell International Inc., account for nearly one-third of the market. The moderate level of concentration pressures buyers to accept rising prices, despite the growing number of available vendors in the market. During the three years to 2017, rising input costs and strengthening demand are forecast to increase air filter prices. Growing input costs in the presence of moderate competition allow vendors to pass some of these rising costs onto buyers, hurting buyer negotiation power.

“On the other hand, the low level of specialization allows buyers to easily compare products across vendors, which saves time for buyers during the selection process,” says Weinstein. Furthermore, the strengthening value of the US dollar enables buyers to purchase more air filters from foreign suppliers, which are typically offered at competitive prices. Lastly, low switching costs allow buyers to consider swapping air filter vendors with ease. Buyers can maximize their negotiation power by taking advantage of these positive characteristics.

The moderate risk for both the supply chain and the average vendor has the potential to place buyers at risk of supply shortages or prices spikes. Price volatility over the three years to 2014 has been low, but a forecast price jump in the three years to 2017 will increase price volatility. To curb rising prices and risks, buyers are encouraged to either purchase in bulk now or engage in contracts to avoid future cost increases. For more information, visit IBISWorld’s Air Filters procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of air filters, which are devices used to remove dust, pollen, bacteria and other particles from the air. Air filters in industrial and commercial applications are placed in ventilation systems to improve the quality of the air, which could otherwise be harmful to sensitive products, equipment or employees. This report will focus on the commercial and industrial applications of air filters, although they have a wide variety of other applications. Air filters are typically made from paper, foam, fiberglass and cotton. This report does not include automotive or laboratory applications.
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.

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Gavin Smith
IBISWorld Inc.
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