Although rising market share concentration has limited the level of price-based competition in the industrial clothes dryer market, the high availability of substitutes and increasing import penetration have kept suppliers from raising prices too steeply, boosting buyer power. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Industrial Clothes Dryers to its growing collection of procurement category market research reports.
Los Angeles, California (PRWEB) November 17, 2014
The industrial clothes dryer market has a buyer power score of 3.5 out of 5, reflecting favorable market conditions for buyers. IBISWorld market research analyst, Kiera Outlaw, says, “Buyer power has largely been supported by low price volatility, which has been a result of rising imports pressuring domestic suppliers to keep price growth steady.” Furthermore, the high availability of substitutes has increased buyers’ access to viable alternatives.
Low price volatility during the past three years has allowed buyers to comfortably fulfill their industrial dryer needs without fearing the risk of sudden price increases. “Rising import penetration has largely helped to keep price volatility low, while also providing the market with cheaper machines,” says Outlaw. Further to cheaper products on the market, the availability of viable substitutes, such as used or rented machines, has also boosted buyer power during the period. Used industrial clothes dryers are often substantially cheaper than new models, thus saving buyers money and, sometimes, the headache of securing financing.
Unfortunately, there have been market characteristics working against buyer power. Buyers often need to secure financing when purchasing new industrial dryers, which exposes them to high switching costs. High switching costs are disadvantageous for buyers because they cannot easily maneuver from one supplier to the next. Furthermore, due to some merger and acquisition activity, market share concentration has been rising, further hindering buyer power. Even though suppliers compete on price, price-based competition is mild and buyers may not realize significant cost savings when comparing quotes, especially when strong brand-name recognition applies. With fewer suppliers, buyer power begins to weaken, forcing buyers to leverage other market characteristics that are working in their favor, such as low price volatility. Major vendors in the market include Alliance Laundry Systems, Pellerin Milnor Corporation and Girbau Industrial.
Overall, current market conditions are tipped in favor of buyers. However, price growth is forecast to accelerate through 2017, indicating that buyers should secure their industrial dryer needs now rather than later. For more information, visit IBISWorld’s Industrial Clothes Dryers procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of industrial clothes dryers, which are used in hotels, motels, healthcare facilities, athletic facilities and dry-cleaning plants to dry large volumes of clothing, linens and other textiles. These dryers can have clothing capacities of up to several hundred pounds. This report does not include ironing equipment, washing machines, laundry accessories (such as drying stands and tables), domestic or commercial laundry machines, or laundry machine rental. This report also excludes coin-operated laundry machines.
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.
For the original version on PRWeb visit: http://www.prweb.com/releases/2014/11/prweb12332479.htm