Rising Input and Regulatory Compliance Costs Affecting AWP Pricing, IBISWorld Report Asserts

Prices for aerial work platforms have fluctuated the past three years as a result of rising input and regulatory compliance costs and greater competition from imports, according to a report from IBISWorld on aerial work platform procurement. According to IBISWorld procurement analyst Deonta Smith, the increased availability of imported aerial lifts that are generally far less expensive than their domestic counterparts has created downward pressure on prices.

Prices for aerial work platforms vary by size, type, functionality and scope of the product.

“Despite the generally high price range, most suppliers of aerial lifts are able to provide maintenance services at competing prices,” said Smith. Pricing is more favorable for high-volume buyers such as rental companies and the U.S. military.

Aerial lift prices have experienced a low level of volatility during the past three years, the report says, although certain input costs have climbed up. Price volatility is caused by economic factors such as demand from contractors and government spending as well as prices of inputs, such as steel, which has increased in price by an average annual rate of 3.3 percent during the past three years to 2013.

In 2013, the benchmark price for an average lift is about $33,718, the report says.

For further information or to obtain a copy of the report, visit http://www.ibisworld.com or call 800/330-3772.

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