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Water Treatment Chemicals Procurement Research Report Now Available from IBISWorld
Date:1/5/2014

Los Angeles, California (PRWEB) January 05, 2014

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 th
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