Price growth is forecast to accelerate during the next three years due to higher per capita disposable income and industrial production activity as well as a return to growth in steel prices
Los Angeles, CA (PRWEB) April 13, 2015
Golf carts have a buyer power score of 3.7 out of 5, which indicates a clear advantage for buyers when negotiating supply agreements. Buyers benefit from limited price growth and a moderate level of substitutes in the market; however, buyer power is limited by the high market share concentration that hinders the number of viable suppliers in the market.
Buyers have benefited from slow price growth during the past three years. From 2011 to 2014, the average price of a golf cart has increased at an annualized rate of only 0.3%, and year-to-year price changes have been stable and easy to anticipate. “Despite gains in per capita disposable income and industrial production, falling steel prices and declines in the amount of recreational time available to consumers have both kept price growth sluggish,” according to IBISWorld business research analyst Cameron Roark. Slow price growth allows buyers to better plan and budget for future expenses and gives buyers more flexibility when negotiating supply agreements. For example, because price growth is lethargic, buyers are not as pressured to sign long-term supply agreements.
Buyer power is also strengthened by the presence of viable substitute products such as all-terrain vehicles and utility task vehicles. Although these vehicles are generally more expensive than golf carts, they provide more horsepower and greater terrain flexibility. These characteristics can make a significant difference for buyers with transportation needs in hilly, rocky and expansive outdoor applications.
“The biggest hurdle for buyers is high market share concentration. The top four vendors (Textron Corporation, Yamaha Motor Corporation, Ingersoll Rand and Garia) combined account for more than 50.0% of market revenue. The high level of concentration among manufacturers limits buyer power. Nonetheless, buyers typically have more options and more flexibility when working with wholesalers due to the fragmented nature of the wholesale supplier base,” Roark says. For more information, visit IBISWorld’s Golf Carts procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of golf carts. Golf carts are small vehicles designed to transport people and supplies around a golf course. Golf carts help expedite the movement of golfers around the golf course, provide assistance to disabled golfers and provide comfort for golf players. Furthermore, despite their name, golf carts are used in other commercial and industrial settings such as retirement villages, resorts, parks and factories. Golf carts can be either electric-powered or gas operated. This report does not include all-terrain vehicles, airport utility vehicles or farm utility vehicles.
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.