Carpet installation prices are expected to increase as construction sectors displayed strong growth during the period; corporate profit margins are also expected to increase, prompting many businesses to renovate and upgrade.
Los Angeles, CA (PRWEB) May 02, 2014
The carpet laying services market displays a buyer power score of 3.9 out of 5, indicating that buyers have a greater degree of power during the negotiation process. “There are an estimated 11,075 suppliers providing carpet installation services; therefore, the market has a low level of concentration,” says IBISWorld procurement analyst Kiera Outlaw. In the three years to 2013, carpet installation prices are estimated to rise at an annualized rate of 1.8%, primarily due to rising demand from increased activity in the relevant construction sectors.
During the current three-year period, the value of private nonresidential construction is estimated to increase. “As the number of commercial and industrial facilities rises, demand for flooring installation services has been rising, too,” says Outlaw. To keep pace with rising demand, carpet installers have been hiring more staff, which has increased wage costs. Unable to absorb the market's rising input costs, suppliers of carpet laying services have been forced to pass costs down the supply chain in the form of higher market prices.
Buyers have been able to use market conditions to their favor during the period. The low level of market share concentration suggests that suppliers primarily compete based on price. As a result, buyers have been able to pit suppliers against each other to get the best price; however, buyers must take a supplier's level of experience and qualifications into consideration during the selection process, which slightly lowers buying power. Even though a supplier may charge a low price, it does not necessarily mean they have ample experience for every commercial carpet installation project.
In the three years to 2016, the prices of carpet laying service are forecast to rise more strongly than during the current three-year period. This high forecast growth will result from continued growth in the construction sectors, prompting many businesses to expand or renovate existing facilities. Buyers will, however, continue to experience a high degree of negotiation power due to the availability of substitutes and the ability to bundle products and services.
For more information, visit IBISWorld’s Carpet 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 Carpet Laying Services. Carpet layers prepare surfaces for the installation of carpet and provide new installation, additions, alterations, maintenance and repair services. These services are primarily provided by flooring contractors. This report does not include the installation of other flooring materials, such as linoleum, wood, concrete, stone or ceramic flooring.
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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