Abstract
Improved Efficiency of Scales Drive Replacement Demand
Increased accuracy and reliability of the new, sturdier scales with more load
cell components have created huge replacement demand for weighing equipment.
Influenced by global competition, manufacturers, distributors, and retailers are
prepared to invest in upgrading mechanical scales to high-performance digital
ones. Improved manufacturing techniques will enable the production of enhanced
weighing machinery at reduced costs. Declining prices of scales will also
encourage replacement orders, especially within the floor and bench scales
segment.
This Frost & Sullivan research examines the U.S. Weighing Equipment
Markets. It offers revenue forecasts by market segment, covers key drivers and
restraints, and provides strategic recommendations to overcome market
challenges.
Manufacturers to Reduce Prices to Counter Negative Upshots of a Mature
Market
Reduced prices of major components and a slow economy have entailed
competitive pricing and superior levels of service to moderate the restraints of
a saturated market. Since recently introduced products do not have notable
selling points, the market is evolving into a price-driven one, compelling
manufacturers to limit their investments largely to activities that have a
potential to reduce costs. Nevertheless, efforts are underway to improve
products' quality, design, and attractiveness.
Enterprises have to expand the variety of their product portfolios and devise
other marketing alternatives to stay in the reckoning and succeed. "This
includes offering extensive customer service, and support, including personnel
intensive training, product installation, maintenance, and rapid repair
services," explains the analyst. Large companies will seek to become better
total solutions providers. Small and medium-sized businesses will need to ensure
survival through servicing niche markets and securing an increased level of
business.
Consolidation to Help Companies Expand Markets and Find New Applications
for Products
Cancellation of orders due to financial constraints of end users has resulted
in an overstock of weighing equipment. Since the market is already mature,
participants will have to look for new markets and functions for their products.
This need has triggered numerous mergers and acquisitions in the market.
Consolidation will not only provide them with fresh grounds to cover but also
make it difficult for the smaller companies to compete effectively, forcing them
to focus on their core competencies.
Mergers and acquisitions provide enterprises with dual benefits. "While
participants can gain by expanding their product portfolio, many companies also
look at improving their distribution channel so that they can increase their
end-user segmentation," notes the analyst. The consolidation trend is
expected to improve the overall health of the market by easing price pressures
as well as expanding market shares and penetration of companies.
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