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Bare Printed Circuit Boards Procurement Category Market Research Report Now Available from IBISWorld

March 8, 2014

Increased consumer spending, investment in computer and software and rising internet traffic have resulted in higher demand for circuit boards in consumer electronics, computer and IT hardware and telecommunication networks and equipment; in turn, price increases are moderated by low market share concentration and product commoditization, resulting in price-based competition that places pressure on suppliers to keep prices low. To help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Bare Printed Circuit Boards to its growing collection of procurement category market research reports.

Los Angeles, CA (PRWEB) March 08, 2014

Circuit boards have a buyer power score of 3.8 out of 5. This high buyer score indicates that buyers have opportunities to negotiate lower prices and obtain additional services. Additionally, this score reflects stable pricing trends, favorable market structure and low market risks.

Recent price trends have been stable in the three years to 2013. “Increased consumer spending, investment in computer and software and rising internet traffic have resulted in higher demand for circuit boards in consumer electronics, computer and IT hardware and telecommunication networks and equipment,” says IBISWorld business research analyst Andrew Yang. In turn, price increases are moderated by low market share concentration and product commoditization, resulting in price-based competition that places pressure on suppliers to keep prices low. Prices are expected to accelerate slightly in the three years to 2016, but remain stable overall. Stable prices are beneficial for buyers because it allows them to better manage budgets and take their time in evaluating suppliers.

Market structure is also favorable for buyers. Market share concentration is low and product specialization is medium. Circuit boards are fairly commoditized and product offerings are similar between different suppliers. Low market concentration and medium product specialization indicates that buyers have access to many suppliers and no supplier can easily set prices in the market. “Switching costs are also low, giving buyers the ability to negotiate lower prices by threatening to change suppliers for their circuit boards,” says Yang.

Market risks are also fairly low for buyers, helping to ensure that buyers can access and procure a supply of circuit boards at steady prices. Supply chain risks are low, ensuring suppliers have access to the raw materials required to manufacture circuit boards. Demand driver volatility and price volatility is also low, suggesting that prices will not fluctuate significantly. Suppliers do not have the most stable financial structures, putting them at risk for bankruptcy. However, low switching costs and short buying lead times offset the potential consequences of supplier bankruptcy, by allowing buyers to easily find new suppliers. Major vendors include Celestia Inc., Flextronics International Ltd., Sanmina-SCI Corporation, TTM Technologies Inc. and Tyco Electronics Ltd. For more information, visit IBISWorld’s Bare Printed Circuit Boards procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to help buyers of bare printed circuit boards or simply circuit boards. Circuit boards support and connect electronic components and are used in almost all electronic devices and products. Circuit boards are an essential input for companies that produce electronic products. This report excludes circuit board services such as circuit board assembly, backplane assemblies and product testing and development.

Executive Summary

Pricing Environment

Price Fundamentals

Benchmark Price

Pricing Model

Price Drivers

Recent Price Trend

Price Forecast

Product Characteristics

Product Life Cycle

Total Cost of Ownership

Product Specialization

Substitute Goods

Regulation

Quality Control

Supply Chain & Vendors

Supply Chain Dynamics

Supply Chain Risk

Imports

Competitive Environment

Market Share Concentration

Vendor Financial Benchmarks

Switching Costs

Purchasing Process

Buying Basics

Buying Lead Time

Selection Process

Key RFP Elements

Negotiation Questions

Buyer Power Factors

Key Statistics

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/2014/03/prweb11650782.htm


Source: prweb



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