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Electrical Safety Devices & Accessories Procurement Research Report Now Available from IBISWorld
Date:12/27/2013

Los Angeles, CA (PRWEB) December 27, 2013

The buyer power score for electrical safety devices and accessories is 3.5 out of 5. Buyer negotiating power is high due in part to high competition among suppliers and low switching costs. There are about 10,000 suppliers competing for market share, including GE Energy, Eaton Corporation ABB Ltd. and Siemens AG. Since electrical safety devices are produced fairly uniformly across manufacturers, it is hard for suppliers to distinguish themselves based on product quality. All electrical safety devices need to be manufactured according to specifications set by the Underwriters Laboratories in order to be compatible with wiring and machinery. According to IBISWorld analyst Caitlin Newsom, “This highly competitive market increases a buyer's ability to negotiate a lower price for these products. Additionally, suppliers are motivated to continue negotiating with long-term buyers to retain clients, since low switching costs and short buying lead times can encourage customers to look to other suppliers to meet their needs.” There is a very low cost to the buyer to switch suppliers. Generally, buyers of electrical safety devices do not enter into multiyear contracts with suppliers, giving the buyer more freedom to switch suppliers. The biggest cost of switching is the risk involved in testing out a new supplier.

Additionally, RCDs are more expensive when combined with other safety features. When an RCD is combined with overcurrent protection, this is called a ground fault circuit interrupter (GFCI). A GFCI stops the current in an outlet when something gets inserted to prevent electric shock. A GFCI is more expensive than a normal RCD device, but has added protection. “However,
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