Prices for have been rising over the past three years due to the increasing number of businesses and employees boosting demand
Los Angeles, CA (PRWEB) May 03, 2014
Employment law services have a buyer power score of 3.6 out of 5. This score indicates that buyers have a moderate amount of negotiating power due to the high number of suppliers, low switching costs, financially stable vendors and low price volatility. With more than 400,000 law firms in the United States, market share concentration is low and competition is high. According to IBISWorld analyst Caitlin Newsom, suppliers are more willing to negotiate lower service prices due to this heavy competition, helping to boost buyer power. Furthermore, the cost of switching to a new supplier is low, contributing to buyer power. The main costs to a buyer for switching to a new law firm are the time and resources needed to select a new supplier. Low switching costs are helpful in negotiations when a buyer is renewing their contract with a supplier because buyers can switch to a new law firm relatively easily.
Examples of vendors in the employment law services market include Baker & McKenzie, DLA Piper and Latham & Watkins. The average financial stability of suppliers also makes it easier to switch to a new law firm and increases the level of competition. With the market displaying a low risk of bankruptcy, buyers can be confident that their preferred law firm will not go out of business during the service contract, further boosting buyer power, continues Newsom. In addition, the low volatility of the average price also contributes to buyer power. Buyers are not at risk for a huge spike in prices, and suppliers are more willing to negotiate a lower price over a multiyear contract because their input costs are not likely to jump significantly during the time frame.
However, buyer power is hampered by rising demand for employment law services, which has allowed suppliers to raise their prices over the past three years. As the economy continues to recover over the three years to 2016, businesses are expanding their operations and hiring more employees. This trend will further boost the demand for employment law services, thereby increasing service prices and hurting buyer power. For more information, visit IBISWorld’s Employment Law Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of employment law services. Employment law involves mediating the relationship between workers, employers, trade unions and the government. Employment lawyers help ensure that businesses are complying with labor laws by reviewing employee manuals and contracts, advising businesses on employment issues and representing businesses in lawsuits.
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.