The price of fuses has increased with climbing production costs and an uptick in demand from the industrial sector and rising consumer spending
Los Angeles, CA (PRWEB) March 18, 2015
Electrical fuses have a buyer power score of 3.5 out of 5, indicating that buyers are favored in the negotiation process. Although market concentration is medium and the top manufacturers generate the majority of total market revenue, there are many smaller alternative suppliers available. Furthermore, the presence of inexpensive imports keeps domestic prices in check, says IBISWorld analyst Kevin Young. Electrical fuses are manufactured to strict Underwriters Laboratories (UL) specifications, so buyers can seamlessly switch to new products from alternative suppliers in the event that a current supplier becomes unsatisfactory. Consequently, buyers can leverage suppliers against each other to obtain discounts or superior contract provisions in negotiation. Low product specialization also fosters a market environment of intense price competition among even the largest of suppliers.
Other elements of the electrical fuse market are detrimental to, or have a mixed effect on, buyer negotiation power. For example, electrical fuses have a medium level of substitutes. Circuit breakers can be used in place of fuses for certain high current circuits; however, there is no feasible replacement for the fuse for low current circuits. As a result, buyers of small fuses cannot use the availability of substitutes as leverage in the negotiation process, continues Young. There is also a moderate amount of supply chain risk, which can affect critical input prices and therefore market price behavior. Prices have generally trended upward in response to climbing input prices and growing demand from electronic sales.
Luckily for buyers, supply chain risk has not translated to market price volatility and prices have been very stable in the three years to 2015. Major vendors include ABB Ltd., General Electric and Siemens AG. Overall, vendors are very healthy and operate with low bankruptcy risk, giving buyers the ability to make low risk electrical fuse purchases at their discretion. Low bankruptcy risk also allows buyers to engage in long-term contracts. If desired, buyers are advised to seek a long-term contract that insulates them against future price growth. For more information, visit IBISWorld’s Electrical Fuses procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of electrical fuses. Electrical fuses are current-interrupting devices designed to protect electrical circuits from excess current. When too much current passes through a fuse, the wire melts and breaks the connection to circuit, thus stopping the flow of current.
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.