Prices are forecast to grow strongly in the next three years due to continued recovery in the nonresidential construction market and corporate profit margin growth; businesses will be keen to expand and renovate during the period
Los Angeles, CA (PRWEB) April 30, 2014
Floor laying services have a buyer power score of 3.3 out of 5, which implies that buyers have some leverage during the negotiation process. The moderate degree of purchasing power is the result of the fragmentation of the market. Only 0.4% of suppliers, including Spectra Contract Flooring, employ more than 100 people. To this end, buyers can pit suppliers against one another during the selection process to get the best prices. However, as the economy emerged from the recession, businesses began expanding their operations and renovating their premises. “These changes led to a surge in demand for nonresidential construction services and, thus, a rise in flooring installation prices,” says IBISWorld procurement analyst Kiera Outlaw.
As of 2013, a large majority of floor laying services suppliers employ fewer than 10 people, indicating a low level of concentration in the market. The large pool of suppliers indicates that buyers have a plethora of options to choose from when it comes to flooring installation service providers. However, the market also displays a low level of profitability in 2013. These factors offset a buyer's degree of purchasing power. “The large pool of suppliers allows buyers to pit suppliers against one another,” adds Outlaw. “On the other hand, the low level of profitability suggests that price differences among suppliers are not significant.”
Further eroding buyer negotiation power is the steady, moderate growth in flooring installation prices. This growth is largely the result of a surge in nonresidential construction activity following the recession. Private nonresidential construction increased in the three years to 2013. During the period, businesses experienced a return to greater discretionary expenditure budgets, which spurred installation demand and price growth. For more information, visit IBISWorld’s Floor Laying Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of floor laying services. Contractors install a variety of flooring, including resilient flooring, vinyl floor tile and sheet, wood flooring and carpet laying services. This report excludes other carpentry services such as door installation and roofing and siding services, as well as foundation laying.
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.