Price growth is forecast to accelerate over the next three years due to stronger demand and an anticipated rebound in input costs.
Los Angeles, CA (PRWEB) April 13, 2015
Electrical conduits have a buyer power score of 2.9 out of 5. This score indicates a mostly shared power balance between buyers and suppliers.
Rising prices and high price volatility are the biggest factors hurting buyer power. Over the past three years, prices have increased steadily due to strong demand for electrical conduits from the construction sector. Price growth is forecast to accelerate over the next three years due to continued strong demand and a rebound in key input prices. In addition, year-to-year price changes have been moderately volatile due to fluctuating input costs and surging demand from the booming construction sector following the recession. Moderate price volatility makes it harder to anticipate future price increases, and pressures buyers into signing long-term supply contracts to avoid higher prices down the road. “While long-term contracts can shield buyers from unexpected price spikes, they also lock buyers in and prevent them from shopping around and purchasing cheaper conduits,” according to IBISWorld business research analyst Sean Windle.
The lack of viable substitutes also disadvantages buyers. While raceways can be used to protect and route wires, they lack the durability of conduits. In addition, raceways cannot substitute conduits used to house multiple wires, or wires in areas prone to moisture or vibration. As such, most buyers cannot leverage the use of alternative products to achieve lower prices from market suppliers.
“Factors boosting buyer power include a low level of product specialization, low switching costs and low market share concentration,” says Windle. Low product specialization and market share concentration indicate that there is a wide variety of suppliers for buyers to choose from. No supplier dominates the market or dictates pricing. Switching costs are also low, meaning buyers not locked into a long-term contract can easily change suppliers if a problem arises with their current vendor. Major vendors include Atkore International, Home Depot and Southwire Company. For more information, visit IBISWorld’s Electrical Conduits procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of electrical conduits. Electrical conduits are tubing systems designed to help protect and route electrical wires. Electrical conduits are used extensively in wire installations, and are typically made of steel, aluminum or polyvinyl chloride (PVC). Suppliers include manufacturers, wholesalers and retailers. This report excludes conduit bodies, electric boxes and raceways.
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.