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Over the past three years, bearing prices have risen, reflecting growing demand from industrial manufacturing. 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 bearings in its growing collection of procurement category market research reports.
Los Angeles, CA (PRWEB) July 16, 2014
Bearings have a buyer power score of 2.7 out of 5, representing a medium level of buyer negotiating power. Buyers benefit from widespread availability of the product; the ubiquitous nature of industrial bearings makes the purchasing process relatively easy. However, buyers are hindered by moderate and rising market share concentration. The average price of bearings has been rising at a moderate, steady pace during the three years to 2014 due to rising downstream demand, says IBISWorld procurement analyst Cameron Roark. Strong and consistent increases in the industrial production index have boosted sales of bearings during this period, giving suppliers leverage to raise prices.
Additionally, the average bearings vendor generates high profit margins, encouraging larger vendors to acquire smaller suppliers to expand their market share. This consolidation trend is increasing market share concentration and is forecast to further limit buyer negotiation power over the next three years, adds Roark.
Despite their dominance in the market, large vendors still contend with a moderate level of competition. High levels of import penetration, along with declining demand from federal defense, are encouraging suppliers to compete for business and have kept prices from rising at a faster rate, benefiting buyers to an extent.
Buyers can leverage the availability of other vendors, high import penetration and vendors' high profit margins to obtain lower prices. Additionally, buyers can typically negotiate with vendors to secure discount prices when purchasing in bulk, especially when purchasing from large vendors that have high profit margins. Nevertheless, buyers are encouraged to enter into long-term agreements to lock in current prices before they rise further in the next three years. Contracts can reduce the price per unit and provide additional products or services. For more information, visit IBISWorlds Bearings procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of bearings for industrial use. Typically composed of balls or rollers, bearings are machine elements that constrain motion between moving parts, facilitating a specific movement and minimizing friction to improve efficiency. Varieties of bearings include flanged, radial and wheel bearings, among others. This report does not include wheels or pivots.
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, IBISWorlds 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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