Commercial carpet price growth resulted from the rising cost of inputs, such as synthetic fibers, and a surge in nonresidential construction, which boosted demand
Los Angeles, CA (PRWEB) April 15, 2014
Commercial carpets have a buyer power score of 3.4 out of 5, reflecting market conditions that are currently favorable for buyers. There are over 1,300 suppliers providing commercial carpet at the manufacturing and wholesale levels. However, consolidation has been rising among all suppliers in the market. With fewer suppliers to choose from and increasing market share concentration, negotiation power is beginning to tip in favor of suppliers, says IBISWorld analyst Kiera Outlaw. Consequently, commercial carpet price growth has been moderate over the past three years and is forecast to accelerate at a faster pace in the three years to 2016.
Over the past three years, the price of inputs, such as synthetic fiber, have increased production costs for manufacturers and pushed up purchasing costs for distributors. At the same time, the rising trend of consolidation and vertical integration has lessened the pool of suppliers, facilitating stable commercial carpet price growth, says Outlaw. Moreover, a rebound in nonresidential construction and corporate profit margins resulted in increased demand for commercial carpet. Despite the volatility in input and external demand drivers, the price of commercial carpet displayed low volatility in the three years to 2013.
Raw material prices are forecast to rise at a slower rate in the three years to 2016. However, this trend is not expected to impede faster commercial carpet price growth during the period. Volatility in input and external demand drivers is projected to be low. Thus, buyers will continue to enjoy stable, albeit increasing, prices. Additionally, although commercial carpet can be customized, there is a wide range of styles, designs and colors available to buyers. As a result, buyers can avoid the high price tags associated with carpet customization services. For more information, visit IBISWorld’s Commercial Carpet procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of commercial carpet and rugs. These products are generally woven or tufted and are primarily made from synthetic materials, such as nylon. Commercial carpet and rugs are made with a higher level of durability than residential carpet to withstand high-volume foot traffic. Suppliers showcase sample commercial carpet with their respective specifications to indicate how much wear and tear the carpet can take. Commercial carpet and rugs are available from manufacturers and distributors. This report excludes other flooring materials, such as laminate, as well as installation, 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.