Sheet Metal Procurement Category Market Research Report from IBISWorld Has Been Updated

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Price growth for sheet metal is forecast to accelerate in the three years to 2018 due to strong demand and higher input costs; however, strong import competition will continue to keep price gains in check. 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 Sheet Metal in its growing collection of procurement category market research reports.

IBISWorld industry market research
Prices have been rising in response to strong demand from the construction and industrial sectors

Sheet metal has a buyer power score of 3.2 out of 5, indicating an advantage for buyers when negotiating purchasing agreements. Buyers have benefited from slow and steady price growth in the past three years. “Although demand from construction and industrial industries has surged, falling input costs and high import competition have kept price growth and price volatility low,” says IBISWorld research analyst Sean Windle. These trends will largely continue in the next three years. Falling input costs and high import competition give buyers leverage to negotiate prices down, and low price volatility means that buyers are not pressured to sign long-term contracts.

Low switching costs have also boosted buyer power. While there is a moderate level of specialization in this market, many buyers purchase standard sheet metal on an off-the-shelf basis from a variety of vendors. As such, if buyers are not satisfied with their current supplier, they can easily switch to another provider without incurring significant costs. Says Windle, “Low switching costs put pressure on suppliers to provide excellent deals and customer service.” Depending on their application, buyers may also have many alternatives to sheet metal to choose from. For example, a variety of construction materials, including wood, stone and cement, can substitute for sheet metal.

Factors diminishing buyer power include moderate market share concentration, which is driven by the presence of large-scale primary metal manufacturers like ArcelorMittal, Nucor Corporation and US Steel. These companies are vertically integrated, with mining, smelting and a variety of metal manufacturing and fabrication operations. Vertical integration has enabled these companies to carve out large shares of the market for themselves. Fortunately, a number of smaller manufacturers and distributors also provide sheet metal. For more information, visit IBISWorld’s Sheet Metal procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of sheet metal, which is produced in an industrial process via which raw metal is formed into thin, flat pieces. Sheet metal is used in a variety of applications, including automobile and aerospace manufacturing and construction. Suppliers include primary metal manufacturers, specialty sheet metal producers and distributors.

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 or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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