Demand for products have increased during the past three years due to a rebounding nonresidential construction sector
Los Angeles, CA (PRWEB) April 05, 2014
Commercial concrete pipes have a buyer power score of 3.1 out of 5. This score signifies a medium level of buyer negotiating power in the commercial concrete pipe market. “Buyer power is positively influenced by low levels of product specialization and negatively affected by moderate market share concentration and the low availability of substitutes,” says IBISWorld procurement analyst Deonta Smith.
Because few suppliers operate on a national level, buyers have a limited selection of suppliers that best suit their needs; most suppliers operate solely on a regional level, thus limiting their reach. “While small-scale operators do compose the majority of the suppliers, large-scale suppliers have gained significant market share by monopolizing entire regions, limiting a buyer's options,” says Smith. Additionally, because buyers enter into contractual agreements with only one commercial concrete pipe supplier per project, it is difficult for buyers to switch between firms without incurring a loss, thus increasing switching costs. Any buyer that is planning on procuring commercial concrete pipes will be limited to selecting from the suppliers that operate in their market. This limited selection reduces buyer power.
Moreover, the lack of substitutes for commercial concrete pipes further narrows the buyer's scope of possibilities. If a buyer is not satisfied with the large-scale firm that supplies their geographic location, a small-scale service provider may be available as an alternative. Leaning toward a small-scale service provider can help buyers obtain leverage by creating competition during the negotiation process. A further impetus for buyer power is the low level specialization of these products. Buyers can purchase commercial concrete pipes from suppliers located within their operating region and obtain transportation discounts. However, seeking out a large-scale service provider to satisfy their needs would spur competition among suppliers. This expands the range of suppliers from which a buyer can choose, thus improving buyer power. Major suppliers include CRH PLC, Lafarge North America, HeidelbergCement AG and Cemex SA de CV.
For more information, visit IBISWorld’s Commercial Concrete Pipes procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of commercial concrete pipes. Commercial concrete pipe manufacturers produce commercial grade concrete pipes used specifically for commercial infrastructure needs, such as storm water drainage and water transportation.
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.