Industrial Refrigerators Procurement Category Market Research Report from IBISWorld has Been Updated

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The market for industrial refrigerators has a buyer power score of 2.9 out of 5, indicating a moderate degree of negotiation leverage for buyers; factors such as heightened demand and minimal financial risk contribute to this score. 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 Industrial Refrigerators in its growing collection of procurement category market research reports.

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Prices have risen in the three years to 2014 due to rising nonresidential construction and industrial production, thereby resulting in growing demand for industrial refrigerators

Industrial refrigerators have a buyer power score of 2.9 out of 5, which reflects that neither buyers nor suppliers have a distinct advantage in negotiations. However, during the past three years, the improving economy has bolstered many of the demand drivers that encourage business in these sectors and, thus, demand for industrial refrigerators. For example, the value of nonresidential private construction and the industrial production index have both increased in the three years to 2014. As a result, industrial refrigerator prices have increased moderately over the period and will continue to do so in the three years to 2017, hindering buyer power.

Merger and acquisition activity during the past three years and moderate market share concentration have limited buyer negotiation power. Some of the larger manufacturing companies that operate in this market include United Technologies Corporation, Johnson Controls Inc. and Maersk. Furthermore, buyers do not have access to viable substitutes, which has also placed downward pressure on buyer power. “Overall, the low availability of substitutes harms buyer power because it gives buyers less leverage during the negotiation process because buyers have fewer suppliers to select when purchasing products,” according to IBISWorld business research analyst Jeffrey Cohen. Another factor that negatively impacts buyer power is related to supply chain risk. Suppliers experience supply chain risks because industrial refrigerator production is dependent on steel. The world price of steel tends to be highly volatile, thus contributing to moderate supply chain risk, which causes suppliers to increase refrigerator prices.

However, there is a factor that benefits buyer power. For instance, several industrial refrigerator suppliers are well-established diversified global corporations that derive revenue from many products aside from industrial refrigerators. Diversified revenue streams help ensure that these companies have low financial risks. Also, while the level of product specialization is medium, buyers oftentimes purchase standardized industrial refrigerators. “There are several types of industrial refrigerators that are standardized that enable buyers to shop among a greater number of suppliers when purchasing standard refrigerators. This provides buyers with more leverage during the negotiation process,” Cohen says. For more information, visit IBISWorld’s Industrial Refrigerators procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of industrial refrigerators. This report includes a variety of industrial refrigerators such as refrigerated containers, vessels and tanks. The report also covers refrigerant and precooling and cold storage units. Heating and air-conditioning equipment manufacturers and refrigeration equipment wholesalers are the primary sellers of industrial refrigerators. The chief buyers of industrial refrigerators are companies that operate in the manufacturing and transportation sectors. This report excludes commercial refrigerators, industrial freezers and icemakers.

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
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
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 or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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