Lifting and Hoisting Equipment Procurement Research Report Now Available from IBISWorld

Lifting and Hoisting Equipment Procurement Research Report Now Available from IBISWorld

Los Angeles, CA (PRWEB) November 28, 2013

On a scale of 1 to 5, with a higher number indicating better negotiating conditions for buyers, lifting and hoisting equipment has a buyer power score of 3.0. This score reflects the fact that neither buyers nor suppliers command an overwhelming amount of power when it comes to negotiating supply agreements. "A low level of concentration among most lifting and hoisting equipment suppliers gives buyers many options from which to choose," says IBISWorld analyst Sean Windle. Suppliers can gain a degree of leverage, however, by supplying more specialized products, such as elevators, for which there are fewer vendors.

Further limiting buyer negotiating power is the fact that many suppliers utilize a cost-plus pricing model, in which prices are tied directly to production costs, with a designated profit margin on top. A major factor in production costs for forklifts and other lifting equipment is raw material prices, mainly steel. During the past three years, steel prices have risen at an estimated annualized rate of 0.8%, and many buyers have been forced to absorb the additional costs through higher product prices.

In addition, the technical and specialized nature of some lifting and hoisting products, which are often customized to serve specific functions within a company or industry, can put buyers at a disadvantage. According to Windle, such specialization can limit the field of available suppliers and make it more costly to switch suppliers. Setting up a supply agreement is an expensive proposition for both buyers and suppliers because both sides must devote resources to understanding the needs and capabilities of the other. In addition, suppliers may need to modify existing machinery and equipment or train employees on specific functions the buyer requires. These factors can sometimes offset any potential savings that would result from switching suppliers.

Despite these challenges, buyers usually have a variety of suppliers from which to choose. Concentration among suppliers is typically low, which, depending on the level of customization required for their product, can allow buyers to choose from a broad field of global, national, regional and local suppliers. For more information, visit IBISWorld's Lifting and Hoisting Equipment procurement research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to help buyers of lifting and hoisting equipment, which includes elevators, hoists, forklifts, lifts, loading equipment, stackers, winches, tilts, manipulators, loading ramps, pulleys, cranes, trolleys, escalators and other similar devices. Suppliers are generally manufacturers, but wholesalers also supply some of these items. Lifting and hoisting equipment vendors do not supply conveyors or turntables.

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

Vendor Financial Benchmarks

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.

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