Incitec Pivot Ltd (ICPVF) 2.5600 $ICPVF
Explosives Procurement Category Market Research Report From IBISWorld Has Been Updated
PRWeb - Sat Jul 05, 5:00AM CDT
Explosives have a buyer power score of 2.4 out of 5. The buyer power score in this market is low, primarily due to the pricing model and low availability of substitutes. Buyers face limited leverage in negotiations due to the low differentiation in products and prices between suppliers. Explosive materials are required to perform identically if they are a comparable product regardless of the buyer, resulting in very similar manufacturing processes, cost structures and, ultimately, prices. "The price of explosive materials is mostly dependent on the cost of the manufacturing process and the price of chemical inputs necessary for production," says IBISWorld procurement analyst Pierre Dessertenne. "Rising prices of raw materials that are required to make chemicals and the prices of the chemicals themselves have contributed to suppliers' increasing production costs over the past three years." The increase in costs has been passed down to buyers. Over the next three years, prices are expected to continue growing albeit at a reduced rate because of a decreasing cost of inputs and stagnating wages.
Explosives Procurement Category Market Research Report From IBISWorld Has Been Updated
PRWeb - Sat Jul 05, 5:00AM CDT
Explosives have a buyer power score of 2.4 out of 5. The buyer power score in this market is low, primarily due to the pricing model and low availability of substitutes. Buyers face limited leverage in negotiations due to the low differentiation in products and prices between suppliers. Explosive materials are required to perform identically if they are a comparable product regardless of the buyer, resulting in very similar manufacturing processes, cost structures and, ultimately, prices. "The price of explosive materials is mostly dependent on the cost of the manufacturing process and the price of chemical inputs necessary for production," says IBISWorld procurement analyst Pierre Dessertenne. "Rising prices of raw materials that are required to make chemicals and the prices of the chemicals themselves have contributed to suppliers' increasing production costs over the past three years." The increase in costs has been passed down to buyers. Over the next three years, prices are expected to continue growing albeit at a reduced rate because of a decreasing cost of inputs and stagnating wages.
