The price of furnaces has risen during past three years due to rising demand stemming from continued economic recovery
Los Angeles, CA (PRWEB) April 25, 2015
Furnaces have a buyer power score of 3.4 out of 5. This score reflects buyers' moderate ability to negotiate lower prices as a result of a large number of suppliers and the price-competitive nature of the furnace market. IBISWorld estimates that there are about 1,500 suppliers of furnaces (some of the largest of these include Ingersoll Rand, Johnson Controls, Bosch AG and Watsco), providing a large number of capable suppliers to satisfy specific buyer needs. However, recent demand growth and price fluctuations for key inputs such as steel and aluminum have slightly hampered negotiation power.
“Economic recovery has continued in the three years to 2015, causing demand to increase, specifically from the industrial and construction sectors, and prices to rise. This recovery will persist, further leading to restored demand from key buyers, such as the housing sector, in the years to come,” according to IBISWorld business research analyst Jordan Weinstein. During the three years to 2018, suppliers are expected to experience a rise in input costs like the prices of steel and aluminum. Consequently, suppliers will pass a portion of their increased production costs to buyers in the form of higher furnace prices.
Fortunately for buyers, rising demand and input costs for furnaces are anticipated to lead to only small price increases through 2018. “The slight price growth will be attributed largely to the standardized nature of furnaces and the high level of competition in the furnace market. Pricing pressure as a result of heavy competition means suppliers that drastically raise prices as demand rises will lose business to those vendors offering the same standardized furnaces at a lower cost,” Weinstein says. For more information, visit IBISWorld’s Furnaces procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of furnaces make informed purchasing decisions. The main function of a furnace is to generate heated air, which is then circulated throughout a building or structure. Furnaces are commonly gas, oil or electric. This report does not include heat pumps, heat exchangers, water heaters or heating stoves.
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.