This blog explains what the focal points of the pallet changer market are. The analysis was made starting from the points on which customers focus at the service level as well as the product. In addition, they will then be analyzed individually to make the reader understand how Top Industries addresses the crucial aspects and therefore which path to pursue to achieve such business success.
Then, in line with the internal analysis, the Top Industries method will become clear, exemplifying the relationship with market opportunities and the relationship with threats. Finally, the role of all competitive forces and the related relationships from the point of view of bargaining power will be considered in order to offer a complete description of the competitive environment that is not always simple in which sector companies operate.
Characteristics of Pallet Changer market
The pallet changer market is characterized by increasingly complex environments. Complexity can derive from several factors such as: performance, delivery times, product customization or system adaptability.
It is important, in the current market, to focus on each of these objects as they represent a real distinctive factor in an extremely technical sector. Top Industries continuously invests in innovation in order to be projected into new contexts and always have a perspective of orientation towards the future. Although in different ways, the challenge of Top Industries is to offer the best possible performance through the continuous study of the most innovative technologies of the period, in order to remain linked to ever faster technological evolution while also trying to guide it in the gearbox market pallet.
The performance of the pallet changers is certainly to be considered as the greatest strength of the company as they are completely detached from the average levels and not only of the entire pallet inverter market. They range from minimum levels of 25 pallets per hour up to systems with a working capacity of up to 100 pallets per hour that completely revolutionize the organizational performance of the company that uses them. Beyond the unparalleled level of performance in the market at the level of single machinery, the production range also has an immense value for which competitors can hardly stand up to in comparison. In fact, in opposition to the meager offers, the Italian company constitutes its portfolio of pallet changers through the presence of more than 50 different machines, many of which are available in different versions such as, for example, stationary pallet changers and mobile pallet changers.
Citing the example of the machines available in different versions, we enter into the merits of the second characteristic aspect of the market: customization. With the increase in automation in all business processes, warehouse management is also affected by this aspect and consequently the related products must follow the same ideology. In increasingly advanced warehouses, it is necessary to have extremely customized pallet inverters in terms of dimensions, possible arrangements, and also of operation as internal processes are increasingly aimed at optimization. The machines, although intelligent, are unable to recognize and adapt to extraordinary or uncoordinated situations. As a result, companies of all kinds cannot afford uncertainties regarding their inventory. So, Top Industries INC intervenes here with its range of products that are not only easily adaptable to all contexts, large or small, whether through mobile or fixed options, but also according to other criteria that can all be combined with each other or by adopting logistics lines. fully automated.
The main ones are with regard to the type of product that can be tipped or not, or according to the required performance and the type of movement of the machine.
Through these subdivisions, there is the certainty that, whatever the solution chosen, it will result in an improvement in internal efficiency and the best adaptability achievable based on the characteristics of the customer.
Finally, the delivery times. Not only in this market, but in all of them, delivery time is an essential element for business success since by reducing it, it is possible to carry out training earlier and, consequently, to gain confidence as the machine matures in a shorter time. and so is the effectiveness of the solution itself. Clearly, this is a value that cannot be fixed by definition as delivery times are variable depending on the customization required. Through the internal lean production, however, it is possible to receive the best possible solution after at least 30 working days. This gives the answer that it takes about a month to considerably improve the internal company process with less physical load on internal operators. Consequently, the increase in margins is certified thanks to the increase in efficiency using our pallet exchangers.
The pallet inverter market
As anticipated, Top Industries has always had an orientation towards the implementation of the new one, trying to anticipate the times by projecting into the future. It is therefore natural that at any time the general trends in the pallet changer sector are kept under control, trying to seize all possible opportunities. The exemplary example of the continuous change of market rules is, without a doubt, the development of the pandemic situation the consequences of legislative choices at first national and subsequently international level.
Surely the challenge has been tough in the last two years, but it will be even more so when the time comes to understand what kind of needs will have changed and what habits will instead disappear in the face of new needs. From the continuous research, many food for thought and many new ideas have emerged that will implement both the existing machinery and the entire catalog with the distribution of new Top Industries brand products. The goal is to always stay on the lines, now habitual of innovation, customization and Italian style that have characterized the organization since 1978.
The usefulness of continuous updating and constant research in terms of opportunities and technological development take on a greater value if understood in terms of possible threats. This is because, if objects such as the pandemic situation cannot be under the control of private individuals, it is not so for other factors of analysis. Any unseen opportunity, in the long run, can pose a threat if the rest of the market has moved in that direction if it reveals important development alternatives. In this way, constant activity on new markets takes on a nuance of prevention against declines in the sector.
Incidence of competitive forces in the market
According to Porter’s analysis, the 5 competitive forces (suppliers, competitors, customers, potential entrants and replacement products) act in the market through dynamics of competitive strength between them.
The competitive strength of suppliers is highly variable and depends particularly on the size of the individual company. For very large companies with customers in various markets, the power in the negotiation phase is about the same as the operating companies, thanks to diversification. As a result, the value is divided equally among the forces. The opposite is true in the case of small producers with few customers since, depending completely on a few companies, their bargaining power is very low. In the latter case, a complete upstream integration could also occur since the market agents are always large in size.
Moving on to the next category, the competitors in the market are, as anticipated, are small in size. The pallet changing market is a very specific market with large barriers to entry dictated by experience. This therefore implies a high level of concentration worldwide (the top 5 companies share more than 60% of the world market). In all this, however, the name that always stands out is that of Top Industries INC which stands out from the players in terms of performance and innovative technology without equal on the current market in any area of the world. A fact that acquires even more value if you consider that other market players have machines designed around 2000 on the line.
As for customers, given the type of market and the few operators, they do not have the strength to completely change the rules of bargaining except in exceptional cases. On the other hand, the pallet inverter offered are very similar to each other and this also decreases the power of competitors. For Top Industries Inc, however, the situation is different. The wide range of products for all needs therefore entails the possibility of offering premium products by exploiting this competitive advantage, but always guaranteeing high levels of performance. In addition, the company has the peculiarity of the large use of patents for most of the pallet inverter belonging to the production range. This turns out to be an advantage for the company, but also for the entire market since it protects them from the danger of potential entrants and given the specific nature of the movement, even from replacement products currently.
New Pallet Inverter and New Pallet Changers
The competitive environment regarding pallet changer market can be defined, after the analysis made, as extremely concentrated and above all characterized by a very high level of experience that also affects the entry or otherwise of new competitors. Therefore the competitors are mostly small with low quality devices, except for Top Industries : exception in the sector and also for this market leader. The strengths of the company perfectly reflect the main differential criteria, this to confirm once again the role of the customer, placed at the center of attention.
Both in the past and in the present, thanks to this concept, Top Industries has found itself keeping pace with innovation and given the working method, it is not difficult to imagine that we continue to follow the path traced.