Fuel and cement input prices are anticipated to increase due to demand from abroad. The cost of fuel is passed on to the buyer in the form of surcharges, which are expected to increase over the next three years
Los Angeles, CA (PRWEB) November 01, 2013
Concrete pumping services have a buyer power score of 2.8 out of 5. The score reflects current negative pricing trends and moderate bargaining power for buyers, but positive influences from the ease of purchasing complexity and strong purchasing confidence. “Prices for concrete pumping services have fluctuated over the past three years as a result of rising input costs,” says IBISWorld analyst Deonta Smith. Increased crude oil prices have driven the average price of services upward. Concrete pumping service providers not only apply fuel expenses in to the service price, but many providers apply fuel surcharges for services rendered outside their operating region.
Buyers can expect a higher price associated with switching suppliers due to these surcharges. For example, lower costs are associated with procuring local concrete pumping services because of their instant availability and low buying lead time, providing buyers with the opportunity to obtain services in a relatively short time frame, barring contract negotiations. In this case, buyers have greater leverage in negotiating contracts. On the contrary, buyers are more likely to incur higher costs when they switch suppliers, especially when there are only a small number of suppliers that operate nationally. As such, local service providers have greater negotiating power over buyers.
Furthermore, concrete pumping service providers typically capture moderate profit margins, providing buyers with the opportunity to negotiate the price for concrete pumping and associated services. However, according to Smith, the low availability of substitutes and the high level of specialization among suppliers limit buyers' negotiating power. In addition, the concrete pumping service market is mature and has a medium to low level of financial risk, given its established place in the supply chain. Some major vendors include Cemex SA de CV and CRH PLC. For more information, visit IBISWorld’s Concrete Pumping Services procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of concrete pumping services. Service providers operate batch and mix plants to manufacture concrete for delivery to buyers in an unhardened state. Sand and gravel pumping services are excluded from this report.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.