The average price of fire doors is forecast to continue growing during the three years to 2017, albeit at a slower rate, due to higher import competition and more stable input prices.
Los Angeles, CA (PRWEB) April 12, 2015
Fire doors have a buyer power score of 2.4 out of 5, which indicates that suppliers have more influence than buyers during price negotiations due to a low availability of substitutes and high level of price volatility. “The low availability of substitutes hampers buyer power because it limits buyers' leverage during negotiations,” says IBISWorld procurement analyst Jeffrey Cohen. “Fire doors are the only type of doors designed to withstand fire damage and because they have no viable substitutes, there are no alternatives for buyers to leverage during the negotiation process.” Suppliers are aware of this, and it provides them with a greater ability to control the way they price fire doors.
Buyer power has also been negatively impacted due to high price volatility during the past three years. “Because price driver volatility has been high during the past three years, the volatility of fire door prices has also been high, negatively impacting buyer power by reducing buyers' ability to budget for future purchases,” adds Cohen.
However, there are also several factors that positively impact buyer power, including low market share concentration, low product specialization and low switching costs. A low level of market share concentration benefits buyer power because a large number of suppliers encourages price-based competition. It also enables buyers to shop around many vendors in search for more favorable pricing. Fire doors are mass-produced and standardized, which provides buyers with a greater number of suppliers capable of supplying buyers with fire doors of a similar quality. Lastly, low switching costs allow buyers to easily switch suppliers and familiarize themselves with their new supplier's processes and personnel. Overall, buyer power is anticipated to rise during the next three years price volatility declines. This will enable buyers to more accurately budget for future purchases. For more information, visit IBISWorld’s Fire Doors procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of fire doors. Fire doors are designed to be resistant to flame and smoke. They are used in buildings as a protection against fires. Most fire doors are made out of steel, but they can also be made using glass sections and timber. Fire door suppliers include manufacturers, wholesalers and retailers. The primary types of buyers of fire doors include nonresidential building developers, residential building developers and municipal building developers. This report does not cover storm doors, door frames or other types of doors not resistant to fire.
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.