Explosives Market Procurement Intelligence Report | Consultation Services Offered by Suppliers are Critical for Buyers Considering the Hazardous Nature of the Product | SpendEdge
LONDON--(BUSINESS WIRE)--Mar 18, 2020--
SpendEdge has been monitoring the global Explosives market and the market is poised to experience spend growth of more than USD 8 billion between 2018-2023 at a CAGR of 5% during the forecast period. Request Free Sample Pages.
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Read the 130-page research report with TOC and LOE on "The Global Explosives Market, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, and insights into best practices to optimize procurement spend.”
The exponential growth observed in the global automobile industry is creating a substantial demand for a variety of metals such as copper, iron ore, bauxite, titanium, and nickel. This demand is triggering an increase in the frequency of mineral mining and processing activities to extract these metals. This is driving the requirement for mining explosives, which is a key segment of the global explosives market.
In terms of spend share, APAC will account for the highest contribution owing to the rapid scaling up of the construction industry in this region. Explosives are essentially used in blasting activities in the construction industry during infrastructure construction. Meanwhile, in the US, the prominence of the natural gas industry due to the discovery of large shale oil and gas reserves will contribute towards the demand growth of the explosives market.
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Insights into market price trends:
- The price of ammonium nitrate that is one of the key raw materials is set to soar owing to the supply shortage of natural gas. This will add to suppliers’ manufacturing prices which will have an inflationary impact on the explosives market price.
- The dynamic nature of crude oil prices will not only propel the price of raw materials but will also drive logistics costs incurred by suppliers. This will drive the explosives price to a significant extent during the forecast period.
What are the strategies that buyers must adopt to derive value from their partnership with suppliers in this market?
Strategic partnerships with suppliers will not only help buyers to unlock avenues to save costs but will also aid in effective category management considering the nature of the product. Insights into some of the strategies that buyers must follow while negotiating and during the contract period with suppliers are given below:
Engage with suppliers who provide consultation and support services
Provision of services such as technical and safety training, delivery of explosives to blast sites, and all-encompassing rock-on-ground services is one of the critical supplier selection criteria in the explosives market. As handling and operating explosives are hazardous and require domain expertise, suppliers are best suited to take on such requirements of buyers. From the cost-perspective, it will save buyers the costs of engaging with multiple suppliers for these services.
Engage with suppliers adopting backward integration for key raw materials
Buyers are advised to engage with suppliers who have adopted backward integration for raw materials such as ammonium nitrate. Prices and supply of raw materials such as ammonium nitrate are highly volatile due to periodic surges in demand from the fertilizer and chemical industries. Hence, such backward integration can help suppliers to avoid supply interruptions and the need for higher pricing during high-demand periods.
Buy 1 report and get the second for 50% off. Buy 2 reports and get the third for free. Download the free sample of this report on the explosives market.
Some of the key topics covered in this report are:
- Explosives market spend segmentation by region
- Total cost of ownership analysis in the explosives market
- Regional spend opportunity for explosives suppliers
- Explosives suppliers cost structure
- Explosives pricing models analysis
- Explosives procurement best practices
- Category management objectives
- Cost saving opportunities in the explosives market
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PUB: 03/18/2020 10:47 AM/DISC: 03/18/2020 10:47 AM