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Prices have marginally increased over the past three years mainly due to high demand. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Ultrasonic Test Equipment to its growing collection of procurement category market research reports.
Los Angeles, CA (PRWEB) July 03, 2014
Ultrasonic test equipment has a buyer power score of 4.0 out of 5, which is indicative of high buyer power in the market. Buyer power is helped by a large number of suppliers, medium product specialization and stable prices, yet hindered by high market share concentration and significant total cost of ownership. Prices for ultrasonic test equipment have been relatively stable over the past three years, a trend that is expected to continue, says IBISWorld procurement analyst Pierre Dessertenne. Prices have increased marginally over this period as a result of higher demand stemming from rebounding expenditure on infrastructure, industrial production and fossil fuel extraction.
In addition, more expensive product types have increased in popularity over the past three years, further raising the average price. Prices are expected to subside marginally over the next three years because of the anticipated decline in input costs, such as average wages and purchases like plastic products, adds Dessertenne. Price volatility for ultrasonic testing equipment is expected to remain low due to competitive pressure, and as such, buyers can purchase the equipment as the need arises and do not have to hedge for future price variation.
The total cost of ownership for ultrasonic test equipment is high because of worker training requirements and recurring purchases of goods necessary to operate ultrasonic test devices. Buyers will need to keep purchasing parts and services from their supplier often, which increases costs and reduces buyer power. To keep the total cost of ownership down, buyers are encouraged to seek out long-term supply agreements with discounts on device maintenance and worker certification and training.
There are many suppliers of ultrasonic testing devices, which ensures price-based competition in the market. The two main large manufacturers are Olympus and General Electric, who have a large market share. Market share concentration, despite being high, is not a significant hindrance to buyer negotiation leverage because there are many suppliers in the market to choose from. The many suppliers have created a wide range of products and features. As such, buyers should accurately determine their ultrasonic test equipment needs to find the optimal product before searching for suppliers. For more information, visit IBISWorlds Ultrasonic Test Equipment procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of ultrasonic test equipment. Ultrasonic test equipment is primarily used to detect small flaws, including cracks, disbands and other discontinuities, in various surfaces. This report focuses on ultrasonic test equipment used in nondestructive testing (NDT) and does not include ultrasonic medical devices or ultrasonic manufacturing equipment.
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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