Once-Through Steam Generators Procurement Category Market Research Report from IBISWorld Has Been Updated

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Buyers of once-through steam generators may have limited options for substitute products, which lowers buyer negotiating power; additionally, the medium level of switching costs in the market inhibits buyers' ability to select a new vendor. 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 Once-Through Steam Generators in its growing collection of procurement category market research reports.

IBISWorld procurement market research
Price growth is expected to accelerate over the next three years as domestic demand picks up and as input costs, such as steel, increase

Once-through steam generators (OTSGs) have a buyer power score of 3.3 out of 5. This score indicates an advantage for buyers when it comes to negotiating supply agreements in this market. While factors such as stable price growth and price-based competition among suppliers boost buyer power, moderate switching costs and few substitute goods limit this power.
One of the largest factors contributing to buyer power is the stability of price growth over the past three years. From 2011 to 2014, the average price for OTSGs has been rising due to steady growth in demand from industrial buyers. Import competition has also helped stabilize price growth over the past three years. In 2014, imported OTSGs account for a large percentage of domestic demand. One of the largest importers is China, which enjoys relaxed labor and environmental regulations. “As such, manufacturers in China and other low-cost producing countries can manufacture comparable products at a lower cost and, consequently, pass their cost savings down to buyers in the form of lower prices,” according to IBISWorld business research analyst Sean Windle.

Import competition has fueled price competition among US suppliers, which has helped keep price growth moderate, despite increasing domestic demand and volatile input prices. Stable price growth makes it easier for buyers to gauge future expenses, and it also gives buyers more flexibility to shop around for the best deal. “Furthermore, having additional supplier options overseas is beneficial to buyers, given the moderately concentrated nature of the OTSG market in the United States,” says Windle.

While stable price growth and import competition have helped raise buyer power, other factors have worked against buyers. For example, depending on the application, buyers may have limited options for substitute products, which lowers buyer negotiating power. Additionally, the medium level of switching costs in the market inhibits buyers' ability to select a new vendor. Major vendors include Doosan Heavy Industries & Construction Company, General Electric Company and Cummins Inc. For more information, visit IBISWorld’s Once-Through Steam Generators procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to help buyers of once-through steam generators (OTSGs). OTSGs are a type of heat recovery steam generator that converts steam into energy. These products are commonly used in utility applications, as well as for enhanced oil recovery processes. Suppliers are primarily manufacturers.
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
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
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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