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Security Shutters Procurement Category Market Research Report from IBISWorld has Been Updated
  • USA - English


News provided by

IBISWorld Inc.

Apr 17, 2015, 04:00 ET

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In the next three years, the price of security shutters will rise in response to the rising cost of aluminum and continued growth in construction activity

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Los Angeles, California (PRWEB) April 17, 2015 -- Security shutters have a buyer power score of 3.5 out of 5, indicating moderate negotiation power for buyers. Security shutters typically consist of interlocking aluminum slats that can be retracted manually or automatically with a central control system. According to IBISWorld market research analyst, Kiera Outlaw, "Buyers benefit from low market concentration, which gives them many suitable suppliers to choose from." Vendors are disproportionately concentrated in high-demand areas, which fosters intense price competition and further benefits buyers in those regions. Despite volatile input costs and demand trends, this competition has yielded a low level of price volatility for security shutters over the past three years. Stable prices allow buyers to budget security shutter procurement with the confidence that price spikes are unlikely to occur. Major vendors in the market include Home Depot, QMI Security Solutions and Abbott Industries.

However, a number of factors work against buyer negotiation power. "The price of aluminum is projected to increase in the next three years because of burgeoning demand from emerging markets in China and India," says Outlaw. With aluminum being a primary input, suppliers' production costs have been increasing, which has been pressuring security shutter prices upward. Growth in housing starts and the value of construction will drive up demand for security shutters from the residential and commercial sectors, although the declining crime rate will inhibit this growth. Together, these forces are projected to lead to higher prices throughout the next three years. Furthermore, significant switching costs pose some financial barriers to buyers, especially if the ongoing project is highly customized or partially completed.

Currently, no upstream production inputs to security shutters are at significant risk, benefiting buyers with consistent input availability. There are also several substitute goods available to buyers of security shutters, which decreases their reliance on shutter providers and increases their negotiation power. Once installed, security shutters have lengthy service lives and low ownership costs. Buyers with imminent security shutter needs should purchase their products now rather than later to hedge against rising prices. For more information, visit IBISWorld’s Security Shutters procurement category market research report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of security shutters. Security shutters, also referred to as roller shutters, are commonly made of aluminum and are designed to prevent break-ins, eliminate window damage from hurricanes, reduce water damage and decrease thermal heating. Shutters are designed to roll up and can be deployed manually or by using an electronic switch. This report excludes other types of shutters and blinds.

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.

Gavin Smith, IBISWorld Inc., +1 (310) 866-5042, [email protected]

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