Locks and Security News: your weekly locks and security industry newsletter
17th April 2024 Issue no. 701
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Locks & security hardware procurement category market research report now available from IBISWorld
Buyers of locks and security hardware have a buyer power score of 3.3 out of 5.0. Scores closer to 5.0 indicate a higher level of buyer power. Buyer negotiation power is limited in this market because substitute products are scarce, related goods must accompany the majority of lock purchases and market share concentration is high, providing the top suppliers with more power over the market, says IBISWorld procurement analyst Aileen Weiss.
However, the commoditisation of most locks and the wide product distribution provide the buyer with some power to shop around and compare prices.
During the last three years, greater consumer confidence and growing corporate profit have created a spike in building construction and car sales. Such activity prompted a greater need for locks and security hardware, says Weiss, and electronic locking systems became more advanced with improved software to control locks. The technological developments and the greater demand for locks led lock suppliers to raise prices, which limited buyer power.
Upgrades and new product developments will continue in the next three years as suppliers continue to improve their locks. The expansion of cities and communities will spur new building development. As such, updated locks and security hardware will be required. Furthermore, a slowly improving economy will encourage the number of businesses to grow, meaning that more buyers will need secure locking systems. Though suppliers will continue to increase prices due to higher demand, buyers will benefit from high competition among suppliers, thanks to wide distribution networks and improving technological lock features. Major suppliers include Stanley Black & Decker Inc., Ingersoll Rand, Fortune Brands Home & Security and Spectrum Brands Holdings Inc.
Heightened national security will continue to generate high demand for different types of locks and encourage more lock purchases. Though prices will continue to rise and product characteristics will change and improve, buying locks is a stable purchase, and the locks have a relatively long useful life. To avoid fluctuating raw material costs and higher prices, buyers should make purchases now and secure prices with long-term contracts. Finally, to reduce switching costs, buyers should evaluate the capabilities of different locks and security hardware to ensure the appropriate product is purchased.
For more information, visit IBISWorlds Locks & Security Hardware procurement category market research report page.
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 www.ibisworld.com or call 1-800-330-3772.
26th March 2014