Buyers will be negatively impacted over the next three years as prices are anticipated to rise due to growing demand, though this impact will be slight
Los Angeles, CA (PRWEB) December 03, 2013
Document destruction services have a buyer power score of 3.9 out of 5. This score reflects favorable pricing trends and extremely low price volatility. Although prices rose during the three years to 2013, the increase was marginal. Prices are expected to continue rising in the three years to 2016, but the increase will still be slight. Additionally, document destruction services are subject to a low level of price volatility overall. “Buyers benefit from not having to deal with extreme price fluctuations,” says IBISWorld procurement analyst Andrew Rogers. “As a result, buyers can plan ahead for purchases and not have to worry that the price they pay will change dramatically.” Favorable price trends and low volatility increase buyer power for document destruction services.
Despite a moderate level of market concentration, the desire to minimize transportation of sensitive documents has led to substantial fragmentation in the market for document destruction services. “The rise in local and regional service providers has come in response to buyers' increased need to reduce potential security breaches by employing locally based companies to dispose of documents,” adds Rogers. Sourcing document destruction services from local providers also allows buyers to save on fuel costs incurred while transporting documents. Consequently, the increasing number of local and regional providers has challenged the dominance of major national players like Iron Mountain and Brambles-owned Recall, providing buyers with more suppliers from which to choose.
Additionally, high buyer power is underscored by low product specialization and low switching costs. Standards have been established for document destruction services to ensure the service being provided is adequate, and suppliers are reluctant to deviate from these standards. Because of this low level of specialization, buyers can choose a new supplier without worrying that the service provided will change. These factors allow buyers to source the services from a greater pool of suppliers. For more information, visit IBISWorld’s Document Destruction Services procurement research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of document destruction services. Data destruction and shredding services include the physical shredding of documents in a secure manner to protect information from theft or abuse. Suppliers that provide document destruction services dispose of a range of items, including paper-based files, DVDs, computer disks and film. Service providers include document management firms that are primarily engaged in records management, data protection and recovery and data destruction services.
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.