Desk Systems Procurement Category Market Research Report Now Available from IBISWorld

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Desk system prices have risen during the three years to 2013 due to rising and volatile input costs and increasing demand as business sentiment improves; as business confidence increases and more businesses seek to expand their offices, demand and therefore prices will rise. To help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Desk Systems to its growing collection of procurement category market research reports.

IBISWorld procurement market research
As businesses seek to expand their offices, demand will rise and cause prices to increase in the three years to 2016

Desk systems have a buyer power score of 2.2, reflecting a medium to low level of buyer negotiating power. Desk systems are distinct from office desks in that they include components of an interconnected unit of several workstations, including partitions, hanging shelving and work tables (desks). Despite their low level of negotiating power, buyers benefit from the market's high fragmentation level and medium level of specialization, says IBISWorld analyst Natalie Everett. Undercutting these market positives are the recent price trends: The cost of desk systems has risen dramatically during the past three years, and prices will continue to rise during the next three years. The rising price limits buyer negotiating power because their budgets for desk systems will not extend as far, limiting their choices. Further, volatile upstream input costs have had a negative effect on purchasing power. The market is characterized by wide availability of the product due to the variety of vendors, a medium level of specialization and moderate costs for switching vendors. The product's wide availability aids buyers in negotiations, while the level of specialization and the cost of switching vendors could complicate negotiations.

The volatile cost of inputs, such as steel, and improving commercial construction rates have influenced the price increase for desk systems. Yet, buyers may find some relief from smaller, local office furniture dealers. Local dealers can offer customized advice such as design consultations, inexpensive installation costs and lower shipping costs, continues Everett. Buyers seeking specialized assistance may seek out one of this market's larger players for peace of mind.

Major vendors in the desk systems market include Herman Miller Inc., HNI Corporation and Kimball International Inc. The low market share concentration of vendors will lend buyers some negotiating power. The large number of firms in the market gives buyers many options, boosting buyer negotiating power and the ability to shop around for the best price. While prices may have risen significantly during the three years to 2013, this is mainly because of the volatile input costs that vendors had no choice but to pass on due to the historically low profit margins vendors in this market experience. Thus, buyer power decreased during the past three years. For more information, visit IBISWorld’s Desk Systems procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of desk systems for a business or commercial office setting. Desk systems are made up of individual, horizontal workspaces that are typically separated by partitions that range in height from three to six feet. Such systems include desks or work stations, cubicle walls and desk extensions. This report does not cover office seating, storage units or standalone filing cabinets. This report also does not cover home office desk systems.

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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Gavin Smith
IBISWorld Inc.
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