Input costs are forecast to rise across the board; combined with continued high demand for transportation products, the rate of price growth is expected to double
Los Angeles, CA (PRWEB) March 22, 2015
Truck lift gates have a buyer power score of 3.8 out of 5, indicating favorable market conditions for buyers. Buyer power is derived mainly from the low rate of price growth in the market. Lift gate prices have been growing at an annualized rate of about 0.6% in the three years to 2015. Slow price growth and low price volatility have characterized the market during the past three years and helped offset the negative effects of high market share concentration and moderate supply chain risk. Buyers also benefit from low switching costs, which allow for greater freedom during the purchasing process and heightened leverage over suppliers. Furthermore, buyers derive negotiating leverage from the handful of viable substitutes in the market. “Although products like forklifts and loading ramps come with serious drawbacks, buyers can use these substitutes to put additional pressure on suppliers to lower prices,” according to IBISWorld business research analyst Scott Winters.
Buyer power is curbed by the high concentration of lift gate manufacturers. “Although the extensive network of distributors helps buyers pit multiple distributors against each other, only about 15 companies manufacture lift gates for the US market and there are relatively few models to choose from,” Winters says. Some of the top suppliers of truck lift gates in this market include Maxon Lift Corp., Waltco Lift Corp., Cargotec and Woodbine Manufacturing Company Inc. It is also considerably harder for buyers to find a manufacturer located near their operations. As such, buyers are likely to face high shipping costs, and most buyers have to go through a wholesaler or distributor to make a purchase. Buyers also face a long and relatively complex, multistep purchasing process. The additional complexity and effort of the purchasing process can deplete manpower, while increasing the risk of ordering an incorrect lift gate. Finally, steel prices have been highly volatile in recent years, which has prompted suppliers to widen their profit margins, which can then absorb fluctuations in steel prices. Nonetheless, with adequate research and ample patience, buyers should have no problem procuring a quality lift gate at a reasonable price. For more information, visit IBISWorld’s Truck Lift Gates procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of truck lift gates. Lift gates are attached to the back of heavy-duty trucks, pickup trucks and semi trailers to provide a platform to load and unload materials. Buyers are companies that own delivery vehicles or semi trailer trucks. This report includes all types of lift gates, including tuckaway, cantilever and rail type lift gates. Lift gates are manufactured by a small group of companies, and are made available to buyers through a network of dealers and distributors. This report does not include lift gate installation services, or any other transportation or material handling equipment.
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.