Price growth is forecast to accelerate as demand picks up and raw material costs increase during the next three years
Los Angeles, CA (PRWEB) March 10, 2015
On a scale of one to five, commercial lighting fixtures have a buyer power score of 3.3 out of 5, indicating an advantage for buyers during the purchasing process.
One of the main advantages for buyers during the past three years has been slow price growth. “Although demand from construction and industrial industries has strengthened and spurred higher prices, declining input costs have softened this price growth. With aluminum and steel prices falling, suppliers have enjoyed lower production costs, enabling them to expand profit margins while keeping product prices low,” according to IBISWorld business research analyst Sean Windle.
Buyers also benefit from low product specialization. Although a variety of commercial lighting fixtures exist that provide different luminosities and energy savings, these products are still largely standardized for various building applications. As such, buyers rarely require customized solutions, allowing them to purchase lighting fixtures off the shelf. Low product specialization also fuels price competition. “Because the products suppliers offer are largely homogenous, vendors differentiate themselves based on price, value-added services, product selection, as well as other factors,” Windle says. Furthermore, low product specialization also contributes to low switching costs. In the event that a problem occurs with an existing supplier, most buyers have little trouble finding comparable products from a new vendor.
Factors that hurt buyer power include a lack of viable substitutes. To a small degree, commercial and industrial buildings can incorporate designs that maximize the use of natural light. However, these designs do not eliminate the need for lighting fixtures, especially during evening hours. Buyers have also dealt with a moderate level of price volatility, due largely to significant fluctuations in raw material costs. Moderate price volatility has made it harder for buyers to effectively budget and plan for future expenses For more information, visit IBISWorld’s Commercial Lighting Fixtures procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of commercial lighting fixtures, which are lights fixed to a workspace. Commercial lighting fixtures are typically built from a mixture of metal, plastic and glass and shaped to complement their end use. Commercial lighting fixtures cater to a broad range of companies in warehousing, manufacturing, healthcare, retail, offices and commercial and industrial operations. Suppliers include manufacturers, wholesalers and retailers. This report does not include building lighting control systems or light bulbs and tubes.
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.