>PRWEB.COM Newswire
>PRWEB.COM NewswireLos Angeles, CA (PRWEB) June 17, 2014Industrial fasteners have a buyer score of 2.6 out of 5, which indicates shared power balance between buyers and suppliers. The largest factors that negatively affect buyer power are rising fastener prices, low availability of substitutes and the volatility of input costs. “Downstream market performance has dramatically improved over the past three years,” says IBISWorld research analyst Cameron Roark, “particularly the automotive and construction markets.” Improving performance in both of these key downstream markets has pushed up demand at a faster rate than supply, resulting in rising prices that are expected to continue over the next three years. Industrial fasteners have a low amount of substitutes, meaning that vendors in this market do not have to compete with suppliers in other markets. Suppliers have struggled to forecast their input costs because of the volatility in steel prices, which can be indicative of moderate to high risks of shocks to the supply chain.
Not everything negatively impacts buyer negotiation power, however. Low market share concentration is indicative of high levels of competition in the industrial fastener market. Vendors still compete for large portions of the market through attracting new and existing customers, strategically consolidating smaller firms and placing downward pressure on prices. As the economy continues to recover from the recession, “the consistent demand and supply of fasteners will lead to decreasing levels of volatility over the next three years as the supply chain stabilizes,” says Roark. Furthermore, rising imports have contributed to increased competition for this product segment, increasing buyer negotiation power.
Buyers can leverage the availability of other vendors in the market to improve their rates. Current major vendors include Alcoa Inc., Fastenal Company and Precision Castparts Co. Buyers can typically negotiate with vendors to secure discount prices when purchasing in bulk or entering contracts, especially for larger vendors with higher average profit margins. Entering into contracts can also help mitigate price growth and potential shocks in the supply chain. Furthermore, entering into contracts can further reduce the price per unit, provide additional quality products or services, and secure consistent delivery. For more information, visit IBISWorld’s Industrial Fasteners procurement category market research report page.
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This report is intended to assist buyers of metal fasteners for industrial use. These include generic fasteners, such as screws, nails, rivets, nuts, bolts, washers and threaded or nonthreaded fasteners; precision fasteners; and turned products that are customized for a particular industry, project or customer. This report does not include plastic fasteners or adhesives.
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 StatisticsAbout 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.Read the full story at http://www.prweb.com/releases/2014/06/prweb11952520.htm
