The price of instrumented control systems design and engineering services is anticipated to increase on the back of the economic rebound and subsequent recovery in the industrial and manufacturing sectors
Los Angeles, CA (PRWEB) April 19, 2014
Instrumented control systems design and engineering services have a buyer power score of 3.0 out of 5, which is indicates moderate negotiating power on the buyers' behalf. Buyers primarily benefit from a highly fragmented market, which encourages price-based competition among suppliers. During the three years to 2013, the economic recovery has revived demand for industrial and manufacturing sectors, in turn fueling growth in prices for design and engineering services, says IBISWorld analyst Agiimaa Kruchkin. The demand for these services is anticipated to remain stable over the three years to 2016 due to greater electric power consumption and strong demand from the industrial and manufacturing markets. This trend will further benefit the suppliers of instrumented control systems services, driving prices up, albeit at a slower rate than over the previous three-year period.
Significant switching costs and the highly specialized nature of instrumented control systems design and engineering services largely limit buyer power. Due to the persisting need for highly customized control system design solutions, buyer power is generally restricted. Furthermore, the availability of substitute services is low, as suppliers are typically the key source of skilled talent qualified to provide design and engineering solutions, continues Kruchkin. However, price and driver volatility for these services have remained relatively low over the past three years, which shielded buyers from sudden price shifts. Low price volatility promotes a stable purchasing environment for buyers by allowing them to accurately budget and evaluate prices. Moreover, the diversification of services across several markets, including chemical manufacturing and utilities providers, has led to low vendor financial risk. As such, buyers can expect to be more secure in negotiating long-term contracts over the next three years. Additionally, buyers can determine the need and frequency for design and engineering solutions and then enroll in contracts to help mitigate long-term costs and rising prices. For more information, visit IBISWorld’s Instrumented Control Systems Design & Engineering Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of instrumented control systems design and engineering services. Specifically, this report covers fire and gas monitoring and control system engineering services, as well as process control system design and engineering services. Suppliers of these design and engineering services help buyers with programming and starting up new and outdated control systems; evaluating existing safety instrumented systems; identifying, evaluating and reducing risk; auditing processes; developing procedures; and planning capital improvements to collect data for the control and monitoring of operations.
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
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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.