This article was originally distributed via PRWeb. PRWeb, WorldNow and this Site make no warranties or representations in connection therewith.
The price of plastic pallets has been rising since 2011 and can be attributed to rebounding demand from users and higher plastic materials and resin prices; plastic pallet prices are anticipated to increase in the three years to 2017 due to further improvements in economic activity and expected increases in input costs. 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 Plastic Pallets in its growing collection of procurement category market research reports.
Los Angeles, CA (PRWEB) July 09, 2014
Plastic pallets have a buyer power score of 3.3 out of 5. According to IBISWorld analyst Jordan Weinstein, this score reflects a buyer's moderate ability to negotiate lower pricing due to the large number of suppliers, the products low level of specialization, high availability of substitutes and the competitive nature of the plastic pallet market. However, recent demand growth and price fluctuations in key inputs have slightly reduced buyer negotiating power.
In the three years to 2014, the average price of plastic pallets has grown slightly due to a rise in demand, specifically from the industrial sector. The industrial sector serves as major demand segment for the plastic pallet market and the recovering economy has propelled the sectors to grow at a steady pace during the three years to 2014, continues Weinstein. Additionally, corporate profit and the number of businesses, both of which are tied to demand, have grown at steady rates from 2011 to 2014. Growth in these drivers has consequently increased demand for plastic pallets. Examples of market suppliers include Greystone Logistics LLC, One Way Solutions LLC and Orbis. Suppliers are also expected to experience price increases for key inputs, such as plastic materials and resin over the three years to 2017, as well. As a result, the selling price for plastic pallets will increase slightly as suppliers pass on a portion of their increased input costs to buyers.
Fortunately for buyers, the rise in production costs and demand plastic pallets in the next three years will not lead to significant price increases. Due to the high level of competition in the market, suppliers face strong pricing pressure. Suppliers that drastically raise prices will lose business to those vendors offering the same standardized products at a lower cost.
Price aside, buyer power is aided by the low market share concentration and high competition among suppliers. The large number of suppliers and low to moderate switching costs strengthens competition. In addition, the low degree of specialization of plastic pallets has led to a wide variety of suppliers that are capable of satisfying specific buyer requirements. These conditions are favorable for buyers and are expected to remain unchanged over the next three years. For more information, visit IBISWorlds Plastic Pallets procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of plastic pallets. Pallets provide a stable platform to assist in the mechanical handling of stacked goods for fork lifts. Pallets are used for moving and storing freight, including assembling, storing, stacking, handling and transporting goods in a load. Pallets are built to fit a lift truck's forks between the levels of a platform for secure movement. These pallets may either be made from raw or recycled materials and aid in reducing shipping, handling and warehousing costs. Additionally, some plastic pallet suppliers may provide pooling (renting) services or pallet management services. This report does not include wood pallets paper, or pallets made from steel or composite materials such as oriented strand board and plywood.
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.
For the original version on PRWeb visit: http://www.prweb.com/releases/2014/07/prweb12003883.htm
Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact email@example.com.