Stronger demand and rising input costs will contribute to steady price growth
Los Angeles, CA (PRWEB) March 27, 2015
The mechanical cable market has a buyer power score of 3.3 out of 5, indicating that buyers have a slight advantage over suppliers when negotiating supply agreements. Buyers primarily benefit from the favorable pricing environment in the market. Despite strong postrecession demand from construction and industrial industries, falling input costs and increasing import competition have brought mechanical cable prices down over the past three years. For instance, “recent declines in steel prices have enabled suppliers to lower their production costs and bolster profit margins while also keeping prices low,” says IBISWorld research analyst Sean Windle. Furthermore, rising import competition has spurred additional price competition in the market because US companies must compete with suppliers in China and other low-cost producing countries that can offer comparable goods at a fraction of the cost. Current major vendors include ArcelorMittal, Melrose Industries and WireCo WorldGroup.
Nonetheless, other factors in the mechanical cables market work against buyer power. Over the past three years, construction activity, oil production and private investment in industrial equipment have increased. “Expansion in these areas has stimulated aggressive demand growth within the mechanical cable market,” Windle says. Additionally, the market is highly concentrated and consolidation is increasing, giving large suppliers more pricing power. Consequently, rising demand and market share concentration have offset some of the positive impact that foreign penetration has had on buyer power. In the next three years, these factors are expected to drive up mechanical cable prices as steel prices return to growth. For more information, visit IBISWorld’s Mechanical Cable procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of mechanical cables, which are nonelectric iron and steel cables for construction and industrial use. These include cables made from high-carbon steel, stainless steel and nonferrous metals used for lifting, towing or hauling. This report does not include electrical, communication or energy cables. Suppliers include cable and wire manufacturers, industrial wholesalers and home-improvement retailers.
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.