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Procurement Market Intelligence Report

Heat Treatment Services
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Heat Treatment Services?

What is the average price of Heat Treatment Services?

This procurement report includes pricing information to help you purchase Heat Treatment Services. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Heat Treatment Services been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Heat Treatment Services yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Heat Treatment Services?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Heat Treatment Services with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

In 2020, the top four suppliers of metal treatment services account for less than 30% of market revenue, indicating low market share concentration. ProcurementIQ estimates that there are about 1,034 suppliers currently operating in the United States and the number of suppliers has generally remained stable in the past three... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?

Regulation

How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Relevant Experience

What procedures have you implemented to establish adequate knowledge of the latest technological developments or market changes?

What former experience do you have in heat treatment projects similar to ours?

In what ways have you stayed current with the latest technical developments of the industry? Have you taken any steps towards process automation?

How often have you engaged with companies from our industry?

Company Health

How long have you been in the business of heat treatment services?

Is your firm insured or bonded?

Are you now or have you ever been involved in a merger, acquisition or other divestment? How does this impact your business?

May I evaluate your balance sheet?

What is the credit score of your business?

Customer Satisfaction

Do you have any long-term clients we can speak to as professional references? Can you describe their relationship with your company?

What is the average length of a customer relationship for your company?

How do I get in touch if there is an issue with our contract?

How do clients typically review your performance?

Amidst widespread health concerns, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Additional Service Offerings

Are there any other services you supply that pertain to my business?

What advantages are afforded if I choose to bundle heat treatment with other related services such as finishing or metal plating?

Does my price change if I buy from one location versus another?

If I choose to bundle goods, how will my raw metal shipping options change?

Customer Service

How are customer service inquiries handled?

What is your response time in the event of a treated product malfunction?

Do you employ a staff of quality control managers?

Do you have any records of a time when a client's product was defective and you responded promptly?

Are you experiencing fluctuations in demand as a result of the coronavirus outbreak? What measures are you taking to handle increased/reduced demand?

Supply Chain

How does an increase in raw material prices (e.g. natural gas, electricity) affect your business and me as a buyer?

How would you deal with cost changes for manufacturing machinery?

If prices for some of your inputs have been volatile in the past, do you have a plan for mitigating supply chain risk due to a price fluctuation?

How do you assure the quality of your primary inputs?

Can you tell me about a time when there was a disruption in the supply chain? What did you do to fix it?

Do you source materials with high exposure to market disruptions resulting from the coronavirus? How are you coping with these disruptions?

How diversified is your supplier base for inputs? Do you source from multiple suppliers in different global regions?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should explicitly state the amount of the contract award.

Buyers should explain when and how many payments will be made.

Buyers can consult the Benchmark Price section of this report to determine how much they should pay for heat treatment services.

Selection Criteria

Buyers should evaluate the experience of the supplier.

Buyers should make sure the provider offers appropriate types of heat treatment services.

Buyers should evaluate suppliers based on the estimated costs of the heat treatment services they are offering.

For a detailed list of key selection criteria, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers need to include the date when proposals are due and when award information will be available.

Buyers should include any other benchmark dates relevant to the project that suppliers will need to be aware of.

Evaluate major factors to mitigate risk

How risky is the supply chain?

Buyers of heat treatment services face a moderate amount of supply chain risk. The most significant source of risk is the providers' upstream supply of natural gas. US oil drilling and natural gas extractors are high risk due to fluctuations in the supply of natural gas reserves, which contribute to... Subscribe to learn more.

HIGH

MEDIUM

LOW