Prices have increased during the past three years due to rising operating costs and an uptick in demand brought on by higher corporate profit.
Los Angeles, CA (PRWEB) April 09, 2014
Facility maintenance and repair services have a buyer power score of 3.8 out of 5. This score signifies that buyers in the market have a medium level of power. According to IBISWorld analyst Deonta Smith, buyer power is positively influenced by low levels of product specialization, but negatively affected by high market share concentration and the low availability of substitutes.
Because few service providers operate on a national level, buyers have a limited selection of service providers to choose from. Major suppliers of facility maintenance and repair services include ABM Industries Inc., ValleyCrest Companies and the Brickman Group Ltd. This characteristic of the market is due to the fact that most service providers operate solely on a regional level, thus limiting their reach. While small-scale service providers do make up the majority of service providers, large-scale firms own most of the market share by monopolizing entire regions, limiting a buyer's options and therefore reducing their buying power, continues Smith. Additionally, because buyers enter into contractual agreements with only one service provider, it is difficult for buyers to switch between suppliers without incurring a loss. Moreover, the lack of substitutes for these services further narrows the buyer's scope of possibilities.
Nevertheless, buyer power is aided by the low level of specialization associated with these services. A further impetus for buyer power is if a buyer is not satisfied with the large-scale service provider that serves their geographic location, a small-scale service provider may be available as an alternative. A small-scale service provider can help buyers obtain leverage by creating competition during the negotiation process. Buyers can purchase facility maintenance and repair services from suppliers located within their operating region to obtain transportation discounts. However, seeking out large service providers that operate on a wider scale will expand the range of vendors from which a buyer can choose. For more information, visit IBISWorld’s Facility Maintenance & Repair Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of facility maintenance and repair services. Services provided include, but are not limited to, landscaping, snow removal and exterior grounds maintenance and repair 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.