As the economy recovers, prices will continue to rise at a slightly lower rate due to moderate growth in demand and a growing number of suppliers
Los Angeles, CA (PRWEB) December 21, 2013
Translation services have a buyer power score of 3.2 out of 5. A buyer power score of 3.2 signifies a medium level of negotiating power. “Factors decreasing buyer power are a lack of substitutes, rising prices and a moderate level of service specialization,” says IBISWorld business research analyst Michelle Hovanetz. “Factors increasing buyer power include a large number of suppliers, very low market share concentration, low switching costs and low supply chain risk within the market.”
Prices have risen moderately over the past three years, and are forecast to continue rising at a slightly slower rate through 2016. Price increases are due to a recent rise in demand for translation services stemming from increased globalization, rising immigrant populations and growing world trade values. “Demand is expected to continue rising at a more moderate rate in the coming years, contributing to slightly lower price increases in the years to 2016,” says Hovanetz.
A lack of direct substitutes for translation services negatively impacts buyer power. Buyers must pay the prevailing market price in order to purchase translation services, because there are no equivalent alternatives beyond employing a team of in-house translators. Also detrimental to buyer power is the level of specialization among translation services. There are far fewer suppliers capable of translating rare or highly technical language, making the acquisition of these services more expensive.
In general, however, the total number of translation services suppliers has increased considerably in the past three years, due in part to rising internet usage. The majority of suppliers are independent, nonemploying translators. The internet has made it simpler for independent suppliers to find clients and to start their own businesses. The large number of competitors and low market share concentration among translation services providers help to moderate price increases and provide buyers with leverage when negotiating price. In addition, risk of price shock due to supply chain problems is unlikely. Labor is the primary input cost to suppliers, and wages are anticipated to remain steady. A stable supply chain, along with a wide variety of employers ensures the availability of services. Major vendors include Hewlett-Packard Company, Language Line Services, Lionbridge Technologies and Manpower Inc. For more information, visit IBISWorld’s Translation Services procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of oral and written translation services for business use. Written translators provide translation of technical or general business documents from one language to another. Interpreters provide in person oral translation from one language to another, such as during business transactions or interviews. Translation services also include the localization of products, services and websites for international use.
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.