Variable Message Signage Procurement Category Market Research Report Now Available from IBISWorld

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Factors aiding buyers of variable message signage include declining prices, low market share concentration and a wide variety of alternatives; furthermore, low switching costs and low price volatility contribute to greater negotiation power in this market. 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 Variable Message Signage to its growing collection of procurement category market research reports.

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Higher government transportation funding and increased trade are expected to contribute to growing demand and higher prices during the forecast period.

Variable message signage has a buyer power score of 4.6 out of 5.0, reflecting extremely favorable market conditions for buyers. Factors that increase buyer power include declining prices, low market share concentration, a wide variety of substitutes, little product specialization, low switching costs, very little volatility within the price trend and financially stable suppliers. "Thanks to these factors, the market is in prime condition for buyers looking to negotiate for low prices," says IBISWorld procurement analyst Michelle Hovanetz.

Competition within the variable message signage market is extremely high, and it is prompted by low market share concentration among suppliers. "Buyers can purchase variable message signs directly from manufacturers, wholesalers, distributors or a variety of online resellers," says Hovanetz. Major vendors include Daktronics Inc., Wanco, Swarco AG and Skyline Products Inc. Products are fairly standardized, which increases competition further because products across most brands are comparable, and switching costs to move between suppliers are low. Also contributing to the high degree of competition is the wide variety of substitutes available to buyers, such as static signs, which have historically served the same purpose as market products. Buyers also have the option of renting variable message signs for temporary use, limiting the large capital expenditure of a purchase. These additional options boost buyer negotiating power.

In the three years to 2013, the market's prices have declined slightly, largely due to lower government funding for highway infrastructure. These factors along with falling input costs have benefited buyer power as suppliers compete to gain market share. Low and steady price growth is expected during the three years to 2016 due to rising demand. This slightly reduces the buyer power score, but is still relatively positive for the overall market.

The only significant detraction from buyer power is the moderate amount of supply chain risk associated with market products. This risk primarily stems from the relatively small number of light emitting diode (LED) suppliers. Variable message signage manufacturers rely on LED providers to produce their product; therefore, loss of a supplier could translate to large supplier costs, which would be passed on to buyers.

For more information, visit IBISWorld’s Variable Message Signage procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of variable message signage products for use in the transportation industry. These products include a wide range of LED-based displays for road management, parking and aviation applications. Variable message signs are most commonly used to direct traffic and provide information to motorists, and they can be permanent or portable. Variable message signs can be purchased direct from manufacturers or from a variety of resellers.

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 or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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