Executive Seating Procurement Category Market Research Report Now Available from IBISWorld

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Buyers of executive seating benefit from low market share concentration and low switching costs, but the high price volatility within the market can be detrimental to buyer negotiation power. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Executive Seating to its growing collection of procurement category market research reports.

IBISWorld procurement market research
Prices have fallen on average from 2010 to 2013 due to a dramatic price drop in 2013, stemming primarily from decreased government expenditure and, thus, decreased demand.

Executive seating has a buyer power score of 3.5 out of 5, reflecting slightly favorable market conditions for buyers. “Factors increasing buyer power include a large number of suppliers, low market share concentration, low switching costs and stable demand,” says IBISWorld procurement analyst Michelle Hovanetz. “Alternatively, high price volatility and a projected price increase decrease buyer power.”

There is a low level of market share concentration among all levels of executive seating suppliers. In addition, executive seating in general has a low level of specialization. While highly customized options are available, there is a wide selection of standard, mass-produced seating options, giving buyers many product options with many suppliers. “Low switching costs make it simple for buyers to move from supplier to supplier, negotiating lower prices,” says Hovanetz.

Major vendors include Steelcase Inc., Herman Miller Inc., HNI Corporation and Haworth Inc. A large number of suppliers and low market share concentration result in price-based competition, keeping price growth low. Historically, prices have risen moderately; however, an atypical price drop in 2013 due to declined government consumption caused a negative recent price trend. This price drop led to greater buyer negotiating power as suppliers struggled to recover lost revenue; however, the decline is expected to reverse in the coming three years, leading to higher price volatility and slightly lower negotiating power.

With the exception of the drop in government consumption in 2013, demand for executive seating over the past three years has been stable across all industries due to the wide use of executive seating in offices across the country. Conversely, the price of raw material inputs, such as steel and plastic, has increased with a high degree of volatility, contributing to larger costs to suppliers. Price increases due to higher input costs are mitigated by the high degree of competition in the market, thereby reducing supplier profit margins and, in some cases, negatively impacting certain vendor's financial risk.

For more information, visit IBISWorld’s Executive Seating procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of executive seating, or chairs made for sitting at a desk in an office. Executive seating is primarily constructed of plastic, steel and aluminum, with fabric, leather or vinyl upholstery. Executive seating differs from other types of chairs in its comfort and suitability for working long periods of time while sitting. This report does not include guest chairs, lounge seating, outdoor seating or patient seating.

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
Market Profitability
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 http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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