Hoses & Hose Fittings Procurement Category Market Research Report from IBISWorld has Been Updated - KXXV-TV News Channel 25 - Central Texas News and Weather for Waco, Temple, Killeen |

Hoses & Hose Fittings Procurement Category Market Research Report from IBISWorld has Been Updated

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In the three years to 2014, prices for hoses and hose fittings have risen due to a postrecession surge in industrial production, which has driven demand for hoses and hose fittings. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of hoses and hose fittings in its growing collection of procurement category market research reports.

Los Angeles, CA (PRWEB) July 12, 2014

The hoses and hose fittings market has a buyer power score of 2.7 out of 5.0, which indicates weak negotiation power for buyers. The main contributor to this low buyer power score is strengthening demand for market products over the past three years, says IBISWorld research analyst Cameron Roark. As demand rises, industrial manufacturers are reinvesting in aging production equipment, such as hoses and hose fittings. Meanwhile, demand for residential hoses, which are a more discretionary purchase, have been trending in line with rising consumer income. As unemployment falls and consumer incomes rise, greater downstream demand for hoses and hose fittings has been contributing to rising prices. Buyers will be competing for the attention of large vendors in a market with booming demand, hurting their negotiation power.

Rising input costs have encouraged vendors to merge with upstream suppliers to limit the rising costs by bringing input production in-house. According to Roark, This reduction in the price of inputs has boosted larger vendors' profit levels, which have further encouraged consolidation of competing firms in the market. Although higher concentration levels weaken buyers' negation power through limiting domestic competitive pressure on prices, higher concentration can also benefit buyers because hose vendors have stronger financial positions and can offer a broader range of product features. Additionally, buyers can leverage the average vendor's rising profit trends for lower rates. Purchasing in bulk and entering into long-term contracts can help buyers' negotiate lower per-unit costs and lock in prices in the face of rising prices.

Consolidation aside, average vendor risk is low, indicating many vendors have stable streams of revenue and pose little risk of bankruptcy. The risk of the supply chain is medium, protecting buyers from price shocks. As the economy stabilizes, the average vendor's supply chain risk is expected to decrease over the next three years, further mitigating risk to the buyer. Current major vendors include Airgas Inc., Eaton Corp., Lowes Companies, The Home Depot, Tomkins PLC and WW Grainger. For more information, visit IBISWorlds hoses and hose fittings procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of hoses and hose fittings. Hoses, also known as tubes, included in the report are industrial hoses, hydraulic hoses, tough hoses, fire hoses and air hoses. Types of hose fittings, also referred to as connectors or couplings, include faucet adapters and temperature fittings. Hoses are made primarily of rubber and plastics because the materials need to be strong but flexible. Hose fittings are typically made out of metal, particularly brass or steel, or plastics. This report does not include medical tubing, safety valves, fuel hoses or automotive hoses.

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

For the original version on PRWeb visit: http://www.prweb.com/releases/2014/07/prweb12013681.htm

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