Adhesives Procurement Category Market Research Report Now Available from IBISWorld - 100.7 Jack FM San Diego Radio & DSC- sandiegojack

Adhesives Procurement Category Market Research Report Now Available from IBISWorld

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Adhesive prices are anticipated to rise moderately on the back of rebounding activity in downstream markets and robust growth in external demand drivers, which slightly restricts buyer power. 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 Adhesives to its growing collection of procurement category market research reports.

Los Angeles, CA (PRWEB) July 10, 2014

Adhesives have a buyer power score of 3.3 out of 5, which indicates moderate purchasing power in the market. According to IBISWorld procurement analyst Agiimaa Kruchkin, over the three years to 2014, product prices are anticipated to rise moderately on the back of rebounding activity in downstream markets and robust growth in external demand drivers, slightly restricting buyer power. Factors like market share concentration, price driver volatility and supply chain risk are moderate and, hence, on the fence, so their impact on the purchasing environment is negligible. At the same time, low switching costs and low product specialization have provided relief to buyers. Also, the moderate availability of substitutes favors buyers, having supported negotiation power in the three years to 2014.

Starting in 2010, downstream construction, manufacturing and automotive sectors have rebounded strongly on the back of reviving economic activity, fueling demand for a variety of adhesive products. Suppliers have benefited from the recovery in the downstream markets, which encouraged them to raise their prices. Furthermore, external demand drivers provide a proxy for the activity in the downstream markets. For instance, the growing value of construction is representative of the use of adhesives in commercial and industrial building projects, says Kruchkin. Similarly, new car sales measure the performance in the downstream automotive market, whereas manufacturing capacity utilization represents the activity in the domestic manufacturing sector. As all of these drivers expand, demand for adhesives grows, in turn supporting product price growth.

Purchasing conditions are also largely shaped by input costs. Manufacturers of adhesives require a variety of raw material inputs, such as petrochemicals. During the three years to 2014, the price of chemicals and allied products is anticipated to grow, lifting purchasing costs for suppliers. Consequently, many vendors in the market have passed down cost increases to buyers in the form of higher prices, limiting buyer power to an extent. Buyers should consider entering multiyear supply agreements with vendors, locking in current prices and hedging against future price volatility. The four largest vendors in the market are 3M, PPG Industries, Dow, and Henkel.

For more information, visit IBISWorlds Adhesives procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to help buyers of adhesives. Adhesives are products used to hold two surfaces together by bonding them. Adhesives in this market can be categorized into wet, contact, reaction (single-component reaction and two-component reaction), hot-melted and pressure-sensitive varieties. Adhesives have diverse applications in the automotive, construction, aerospace, packaging and manufacturing markets, among others. This report excludes tape products, as well as asphalt, dental, medical, surgical, natural and gypsum-based adhesives.

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
Market Profitability
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, 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.

For the original version on PRWeb visit: http://www.prweb.com/releases/2014/07/prweb12007228.htm

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