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Buyer negotiating power for water treatment chemicals is hindered by the limited availability of substitutes and the moderate specialization of products. To help procurement professionals make better buying decisions, business intelligence firm IBISWorld has added a report on the procurement of water treatment chemicals to its growing collection of procurement research reports.
Los Angeles, California (PRWEB) January 05, 2014
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The buyer power score for water treatment chemicals is 3.2, indicating a medium level of negotiating power for buyers. This score is a result of moderate supplier profit margins, moderate market share concentration and low supplier switching costs, among other variables. “A moderate market share concentration level among suppliers, which reflects relatively high levels of fragmentation, allows for greater buyer purchasing power,” says IBISWorld procurement analyst Jesse Chiang. Because there are more suppliers to choose from, greater price-based competition arises among suppliers.
Water treatment chemical suppliers provide a range for chemicals to be used in the treatment (e.g. softening, sanitizing) of water. “End-users are numerous and include municipalities, industrial users and manufacturers that ranging from pulp and paper to food and beverage,” says Chiang. Water treatment chemical prices differ based on the type of chemical. Certain chemicals, such as chlorine and copper sulfate, which are used for disinfectant purposes, are cheaper than those used for coagulation, such as caustic soda and potassium permanganate.
Water treatment chemical prices depend on several factors, including the price of inputs, such as salt, natural gas and electricity. Many of the inputs needed in the production process are commodities that are priced in the global marketplace. Suppliers do not have control over these prices, which results in less negotiating power for buyers. However, other operating costs like wages are within the suppliers' control. Wages for the average supplier are low, but they create some leeway for buyers to negotiate lower prices. Major vendors include Ashland Inc., Olin Corporation, The Dow Comechial Company and Univar NV.
Buyer negotiating power for water treatment chemicals is hindered by the limited availability of substitutes and the moderate specialization of products. These factors favor the supplier. For example, in terms of substitutes, buyers can opt to rely on non-chemical solutions, such as pulsed power systems and hydrodynamic cavitation devices, but some of these devices can cost significantly more than water treatment chemical options.
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For more information, visit IBISWorld's water treatment chemicals procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of water treatment chemicals. Water treatment chemicals include algaecides, antiscalants, descalers, boiler feed chemicals, odor control chemicals, water softening compounds, demulsifiers and water fluoridation chemicals that are used to treat ground and surface water. This report does not include water treatment equipment. Chemical manufacturers and wholesalers are the primary suppliers of water treatment chemicals.
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/2014/01/prweb11461887.htm
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.