Metal Forming Services Procurement Category Market Research Report from IBISWorld has Been Updated

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While strengthening industrial production underpinned demand for metal forming services, market competition and falling production costs mitigated price growth over the three years to 2015. 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 Metal Forming Services in its growing collection of procurement category market research reports.

IBISWorld procurement market research
Rising investment in machinery and equipment, along with increasing market consolidation, is projected to drive up prices for metal forming services over the three years to 2018.

Metal forming services have a buyer power score of 3.5 out of 5, reflective of a moderate purchasing power over the three years to 2015. During the period, demand for metal forming services has picked up on the back of strengthening manufacturing activity across all sectors, including automotive, aerospace and energy. Despite rising demand, however, intensifying market competition and falling production costs have mitigated price growth. “Meanwhile, despite changes in prices of raw materials, the low price volatility has facilitated buyer power,” says IBISWorld procurement analyst Agiimaa Kruchkin. In the three years to 2018, prices of metal forming services are projected to rise, albeit at an anemic rate, as the economy continues to rebound.

Low market share concentration and mounting competition among suppliers further bolster buyer power in the metal forming service market. Despite a few prominent players, such as Alcoa and Precision Castparts, most service providers are small to midsize firms that operate on a local or regional basis. “While large multiline firms offer a wide range of metal forming and other related services, specialist firms focus on serving the needs of niche buyers,” adds Kruchkin. “In the meantime, market share concentration has risen during the period as large suppliers have acquired smaller competitors to expand operational capabilities and obtain access to patented goods.”

On the other hand, the highly specialized nature of metal forming services and moderate switching costs undermine buyer power. Considering the unique nature of each product, suppliers generally craft a contract tailored to the buyer's specific needs. High product specialization and a limited number of suppliers with adequate resources to perform specialized metal forming, such as those applied in engine and turbine manufacturing, allow suppliers to charge a premium price for their services. Because there is a high degree of specialization involved in these services, there is a low availability of substitutes and significant switching costs, which further restrains buyer power. For more information, visit IBISWorld’s Metal Forming Services procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of metal forming services, which are services used to stretch metal for subsequent metalworking processes without adding or removing material. Suppliers provide draw forming, hydroforming, roll forming, stretch forming, spin forming and explosive forming services. This report excludes metal forging services and metal forming machinery and accessories.

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
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
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 http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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