Safety Footwear Procurement Research Report Now Available from IBISWorld
As the economy recovers, industrial production and construction are picking up significantly, driving demand for safety footwear, resulting higher prices; in the three years to 2016, although demand will continue growing from the industrial and construction sectors, decreased demand due to declining military engagements will moderate this growth. To help procurement professionals make better buying decisions, business intelligence firm IBISWorld has added a report on the procurement of Safety Footwear to its growing collection of procurement research reports.
Los Angeles, CA (PRWEB) January 02, 2014
Safety footwear has a buyer power score of 3.5 out of 5. The higher the score, the better negotiating conditions for buyers. This score reflects beneficial product characteristics, but moderate market share concentration and medium supply chain risks lower the score, says IBISWorld analyst Andrew Yang. Product characteristics (e.g. total cost of ownership and switching costs) are mostly favorable toward buyer power.
Although there are no direct substitutes for safety footwear, the total cost of ownership, specialization and switching costs are all very low, meaning that buyers are not locked in with a specific supplier. Safety footwear is a fairly commoditized product in the mature stage of the life cycle. Buyers can expect a relatively similar product from different suppliers.
The safety footwear market is moderately concentrated, giving the largest suppliers more leverage in setting prices and limiting the selection offered to buyers. In general, high market share concentration lowers competition in the market and reduces pressure on suppliers to lower prices. In addition, buyers may face price shocks from supply chain risks, continues Yang. Vendors require raw materials such as leather and rubber. Although readily available, these materials are sensitive to supply and demand in the market and may undergo price fluctuations. Similar to non-safety footwear, pricing varies across different brands and types. Different factors, such as type of footwear (i.e. boot or shoe), country of origin, special features, point of purchase (e.g. online or brick-and-mortar stores) and order size all affect the price. Footwear manufactured in the United States incurs higher costs because wages in the United States are higher than those overseas. Prices also differ significantly across different brands. Established brand names tend to have higher prices than those that are less well known. The point of purchase also has an effect on the price. Online retailers often charge markups that result in higher prices compared to shoe stores or manufacturers. Safety footwear often has unique special features necessary for certain work environments, and these can add to the price. For example, safety footwear may include toe-guards, electrical hazard protection, waterproofing and puncture resistance. Buyers can sometimes receive discounts by creating corporate accounts with suppliers and buying in bulk. Larger companies with a high number of employees and established long-term relationships with suppliers can get larger discounts.
Recent pricing trends have been unfavorable toward buyers. As the economy recovers, industrial production and construction are picking up significantly, driving demand for safety footwear. As a result, prices for safety footwear have risen significantly in the three years to 2013. Prices will be more favorable for buyers in the three years to 2016. Although demand will continue growing from the industrial and construction sectors, decreased demand due to declining military engagements will moderate this growth. Input costs will also moderate, allowing suppliers to keep prices stable. For more information, visit IBISWorld’s Safety Footwear procurement research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of safety footwear. Safety footwear includes hazardous material protective footwear, clean-room footwear, insulated shoes, waterproof boots and military boots, among others. Safety footwear can include boots, shoes, clogs, sandals and insoles. Suppliers of protective footwear include manufacturers, wholesalers, distributors and retailers. This product group excludes athletic footwear, safety apparel, and face and head protection.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
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, IBISWorld’s 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/2013/12/prweb11442592.htm