A rise in the number of workers in need of uniforms will cause industrial washing machine price growth to accelerate during the next three years
Los Angeles, California (PRWEB) March 24, 2015
The industrial washing machine market has a buyer power score of 2.8 out of 5, indicating that current market conditions are not particularly favorable for buyers. According to IBISWorld market research analyst, Kiera Outlaw, "Demand for industrial washing machines has increased in the three years to 2014 due to rising aggregate private investment and corporate profit in addition to falling national unemployment." As a result, industrial washing machine prices have risen, which has hindered buyer power. However, waning demand for steel, a key input in industrial washing machine production, has helped offset strong price growth during the period, benefiting buyer power.
Buyer power has also been adversely affected by the low availability of substitutes. "Although buyers can lease or purchase used machinery, no other machine can perform the duties of a washing machine," says Outlaw. Even downsizing to a commercial-grade washing machine is unviable for many buyers because it impedes productivity and increases operational costs. Moreover, the high cost of industrial-grade equipment forces many buyers to secure financing, which in turn leads to high switching costs. Unable to switch suppliers as needed, buyers are often locked into their contractual agreements and must bear substantial costs should they decide to terminate contracts early.
Despite these market characteristics, low supply chain risk has been beneficial for buyers in the past three years because buyers have not been at risk of supply disruptions or delays. While the market exhibits a moderate degree of globalization, the majority of suppliers have domestic manufacturing facilities, easing the flow of goods through the supply chain and on to end users. Major vendors in the market include Alliance Laundry Holdings, Super Laundry and Whirlpool. Moreover, price volatility has been low, which has allowed buyers to secure industrial washing machines and financing arrangements without risk of sudden price increases. Buyers that can source multiple machines or a broad range of products can typically use their large purchase orders as leverage to negotiate lower per-unit prices. That said, in the three years to 2017, prices are forecast to accelerate at rates not seen since before the recession. As a result, buyers should secure industrial washing machines now rather than later. For more information, visit IBISWorld’s Industrial Washing Machines procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of industrial washing machines. Industrial washing machines are designed to clean the large volumes of laundry and linen required by businesses such as hospitals, hotels and prisons; these machines are capable of processing up to 1,000 pounds of textiles at once. With the large liquid-chemical storage barrels attached to them, industrial washing machines can precisely meter and add the required detergents and additives to the correct cycles of the wash. These machines are available through manufacturers due to their size and scale. This report excludes other industrial laundering equipment, such as dryers, as well as commercial and household laundering 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.