A strong rise in aggregate private investment in equipment combined with declining steel prices have supported slow and steady industrial clothes dryer price growth
Los Angeles, CA (PRWEB) February 27, 2015
The industrial clothes dryer market has a buyer power score of 3.1 out of 5, reflecting moderate buyer power. Low price volatility due to higher competition from rising imports has supported buyer negotiating power during the past three years, says IBISWorld analyst Kiera Outlaw. However, low availability of substitutes and high market share concentration have worked against buyer power during the period. Major vendors in this market include Alliance Laundry Systems, Pellerin Milnor Corporation and American Dryer Corporation.
Low price volatility during the past three years has allowed buyers to fulfill their industrial dryer needs comfortably, without fearing the risk of sudden price increases. Moreover, rising import penetration has helped maintain low price volatility, while also providing the market with cheaper alternatives. Thus, buyers have various industrial clothes dryer options to choose from, continues Outlaw. Buyers can also opt to rent or lease the equipment, as opposed to purchasing it outright due to the considerable financing arrangements that purchasing necessitates; however, the availability of substitute equipment is low. In fact, no alternative products on the market can replace the function of clothes dryers.
Other market characteristics have also worked against buyer power. Because of the need to secure financing when purchasing new industrial dryers, buyers are also exposed to high switching costs. High switching costs prevent buyers from easily maneuvering from one supplier to the next. Furthermore, due to some merger and acquisition activity, market share concentration has been rising, further hindering buyer power. Even though suppliers compete on price, price-based competition is mild and buyers may not realize significant cost savings when leveraging quotes, especially when strong brand-name recognition applies. With fewer suppliers, buyer power begins to weaken, forcing buyers to leverage other market characteristics that are working in their favor, such as low price volatility. For more information, visit IBISWorld’s Industrial Clothes Dryers procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of new or used industrial clothes dryers, which are used in hotels, motels, healthcare facilities, athletic facilities and dry-cleaning plants to dry large volumes of clothing, linens and other textiles. These dryers can have clothing capacities of up to several hundred pounds. This report does not include ironing equipment, washing machines, laundry accessories (such as drying stands and tables), domestic or commercial laundry machines, or laundry machine rental. This report also excludes coin-operated laundry machines.
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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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.