During the next three years, prices for acoustical & insulation services are expected to rise at faster rates due to increased input costs and higher demand
Los Angeles, CA (PRWEB) March 29, 2014
Acoustical and insulation services have a buyer power score of 3.3 out of 5. This is indicative of favorable conditions for the buyer, despite growing demand, high specialization and low number of substitutes. “Buyers gain advantages due to high market share concentration, stable input costs and stable financial health of acoustical and insulation service providers,” says IBISWorld procurement analyst Keiko Cadby.
In 2009, the housing market crashed, affecting major industries like construction. In the three years to 2013, the recovering US economy has led to renewed demand for construction and related activities, which has fueled an upward trend in prices for acoustical and insulation services. “Nonresidential growth lags behind residential construction, which has been on the rise during the past three years,” says Cadby. This growth in demand has been favorable for suppliers, and prices are expected to gradually rise in the three-year period through 2016. Acoustical and insulation services are specialized and require experienced operators to create customized solutions for buyers, restricting buyer power. The availability of substitute services is low, because projects require specific tools and materials to properly insulate a building.
The low market share concentration within the acoustical and insulation market, however, is favorable for buyers. The majority of providers are small companies and nonemployers that compete heavily on price, boosting negotiating power for buyers. Although the few larger companies have advantages with value-added service options, the high number of smaller service providers give buyers a variety of options to choose from when sourcing acoustical and insulation services. Stable input costs and reliable financial health help guarantee that services will be completed within predetermined financial and time budgets. Buyers are encouraged to bundle their project needs when considering providers that offer additional services, and elicit multiple bids from vendors to increase options and encourage price competition. Major vendors include Performance Contracting Group, KHS&S Contractors, Acousti Engineering Company of Florida and Standard Drywall Inc.
For more information, visit IBISWorld’s Acoustical & Insulation Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of acoustical and insulation services. Contractors provide building insulation, acoustical and ceiling work, and solar reflecting insulation services. This report excludes plastering and drywall services.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
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.