Mobile and Modular Office Rental Procurement Research Report Now Available from IBISWorld

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Buyers in the mobile and modular office rental market can negotiate lower prices thanks to a wide variety of suppliers, low market concentration, a high level of substitutes and little volatility within the market. To help procurement professionals make better buying decisions, business intelligence firm IBISWorld has added a report on the procurement of Mobile and Modular Office Rental to its growing collection of procurement research reports.

IBISWorld industry market research
As the construction sector continues to recover, demand and prices will rise.

Mobile and modular office rental services have a buyer power score of 3.9 out of 5. A score of 3.9 signifies a high amount of negotiating power. According to IBISWorld procurement analyst Michelle Hovanetz, “this score reflects a wide variety of suppliers, low market concentration, a high level of substitutes and little volatility within the market, which all helps a buyer to negotiate a lower price.” Alternatively, factors decreasing buyer power include high switching costs, the product's degree of specialization and a forecast price increase. Mobile and modular rental contracts must consider many factors, including office unit type and size, customization, length of rental, lease type and additional services needed.

The low level of market share and diversity of suppliers provide buyers with leverage in negotiating price. Location and distance from supplier, however, are cost concerns that may limit viable supplier options. Large national and international companies have the scale and infrastructure to customize office solutions most cost effectively. “They are generally able to offer more discounts,” adds Hovanetz. Regional vendors are smaller, but still hold a significant amount of market share within their area. Some provide a limited inventory of highly standardized offices. Others offer the customization of the larger companies with infrastructure better suited to cater to a specific area. Smaller, independent suppliers compete based on their accessibility. They generally serve local markets in need of modular offices for temporary jobs that do not necessitate customization. Buyer power is also aided by the presence of substitutes in the form of leasing to own, purchasing and traditional office rental. The low level of volatility in price favors buyers as there is little threat of sudden spikes.

Buyers' negotiating power is limited by high switching costs. An average lease will lock in a buyer for one to two years on average with high setup costs. This emphasizes the importance of thorough research when choosing a contract and supplier. Buyer power may also be limited by product specialization, as lease and vendor options may be limited based on their ability to customize office units to buyer specifications. The four largest players in the mobile and modular office rental market are Algeco Scotsman, Mobile Mini, Modular Space Corporation, and McGrath RentCorp.

For more information, visit IBISWorld’s Mobile and Modular Office Rental procurement research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to help buyers of mobile and modular office rental services. Mobile and modular offices are prefabricated, nonresidential buildings that are constructed in a factory using a modular construction process. Units can be permanent or transportable. Mobile offices are designed to be reused or repurposed multiple times. Offices can be small, single unit or large, multi-unit structures, and are constructed of wood, steel or concrete. Rental terms may include unit upgrades during the contract period, purchase of equipment at an agreed residual price and maintenance services. This report excludes miniwarehouses and self-storage units.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Competitive Environment
Market Share Concentration
Vendor Financial Benchmarks
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

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 or call 1-800-330-3772.

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Danielle Goodman
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