Price pressure

The influence of RP on selling prices depends on the monopsony power of the buyer, the price elasticity of the product and the cross-price elasticity for substitute products, and also the coverage of products under RP. The situation most likely to result in equivalence between RP and price-cap regulation is when there is a majority buyer, the number of products under RP is very large and demand is very elastic. In general, the RP system attains its objectives best when the pharmaceutical bill has a close relationship with price pressure and when price differentials in the market for equivalent products are high, which has clear links with the presence of generics. 

Current market trends indicate a gaining momentum of corrosion and temperature-resistant MEMS devices for the use in mass market applications. Silicon-on-insulator material properties make way for a whole new range of uses and applications while being available in sufficiently large quantities to satisfy large volume production requirements. A breakthrough of these devices can be expected through automotive applications, if they can meet the price pressure. 

In addition to the availability issue, short-term price pressure on all regulated solvents is being felt in the form of taxes. Market forces have historically created prices inflated in excess of the newly taxed price. As additional solvents come under increased regulatory scratiny, we may see the hazard excise tax used again, as it has proved successful in speeding the move away from ozone-depleting solvents. 

Scenario pemand shift to Asia Comment A gradual shift of demand to Asia combined with increased price pressure in other world regions due to existing overcapacity... 

Currently, specialty chemical players too are benefiting from better industry conditions, significant cost improvement efforts by many players, and a very cautious stance on investments and acquisitions over the last few years. However, we predict that the pre-1997 glory days will never return. Rapid commoditization of parts of the portfolio and relentless price pressure will continue to endanger business models. For some players, a rigorous focus on cost will be the path to success, others - and these businesses will still earn a substantial premium on industry average profitability - will develop true customer solutions. 

Finally, another and much less positive constant of the chemical industry is the price-cost squeeze, which we expect to remain in the range of approximately two to three percent of sales annually as it has been for the past 20 years, driven by labor and other factor cost increases and by ongoing price pressure, resulting from productivity increases that are passed on to the customers. 

The DLC manufacturer developments are driven by the cost required to meet the automotive market goals. The price pressure bounces indirectly on the carbon and electrolyte suppliers. 

The phenomenon of pricing pressure is not new. Similar periods of predatory pricing develop temporarily during business down cycles and are certainly not unique to engineering. The difference is that the same forces that animate desperate producers during times of recession are now considered the sustaining reality of a hyper economy. As lower pay and prestige continue, the world will suffer the consequences of this narrow mindedness with lower quality, safety and performance outputs. 

In terms of business models, system suppliers generally develop and manufacture sensors to support their systems business (captive market). Customized sensors provide a technological and functional advantage to their system. However, due to intense price pressure in the system business, sensors have become an attractive market opportunity on their own. Thus, some systems houses have set up component businesses, sometimes targeting not only the automotive market but nonautomotive markets as well. 

The topper pad application for urethane receives strong competition from garneted cotton felt pads. The mattress industry continuously evaluates the relative cost and consumer acceptance of the two alternative padding materials. Utilization of flexible urethane foam and the relative share of the available topper pad volume appears to cycle with the competitive price pressures perceived to exist in the retail mattress market. When mattress prices weaken due to slack demand, mattress manufacturers appear willing to cut costs at the expense of consumer comfort and consequently shift a higher ratio of production to cotton felt. 

Both DOE and lEA expect natural gas price pressures will ease significantly from 2005 levels and that prices will be in the 6 /MBtu range in 2030. These estimates assume that current drilling and exploration activities will lead to significant growth in production and that imports of liquefied natural gas will increase. 

In the face of pricing pressures, outcome-based medicine will predominate, increasingly requiring product innovators to demonstrate clear pharmacoeconomic benefits.Cost-benefit analyses and comparisons with other therapeutics are now de rigueur for new drugs and will only increase in importance in future. 

Commodity price pressures 1. Consistently higher prices... 

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