An improving construction sector will be the main source of price increases in the coming years.
Los Angeles, CA (PRWEB) May 09, 2014
Buyers of wood floor installation services have a buyer power score of 3.1 out of 5, reflecting a stronger level of buyer negotiating power. During the past three years, buyer purchasing power has declined mainly due to rising prices and declining profit levels for market suppliers. Installation prices are heavily dependent on the trends and fluctuations in the residential, commercial, industrial and other construction markets.
The value of residential and nonresidential construction has improved significantly during the past three years as the economy rebounded from the building slump that occurred during the recession. In addition, spending on home improvements has been growing at a moderate rate. These trends led to moderate price growth rates for wood floor installation services during the period, negatively affecting buyers, reports IBISWorld. The rising price of lumber, which represents the largest expense for wood floor installers, has also driven market prices up and cut into suppliers' profitability, leaving buyers with less room for price negotiation. In addition, the market's high switching costs further limit buyer power, giving suppliers more leverage to establish desired prices.
Nevertheless, high market fragmentation and mounting competition benefit buyers because these create a larger pool of suppliers to choose from. Current major vendors include Spectra Contract Flooring, Bonitz Flooring, Coleman Floor Company, Creative Touch Interiors and more. Suppliers are increasingly engaging in price-based completion to win new customers and maintain or gain market share in a highly saturated market. In recent years, this nature has allowed buyers to obtain favorable contractual terms and limited supplier ability to charge higher prices because demand from the construction sector has been increasing. Buyers are also expected to benefit from the market's low price volatility. The moderate level of wood floor substitutes and low specialization also boost buyer power. For more information, visit IBISWorld’s Wood Floor Installation procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of wood floor installation and refinishing services. Small, independent contractors make up the bulk of suppliers that provide wood floor installation and refinishing services, though there are a number of large, commercial contractors operating in the market. While buyers have a large pool of suppliers to choose from, there are also a number of installation systems: the glue-down method, connection system, click system, and tongue and groove systems. All of these are different types of wood floor installation systems. This report excludes the installation of other types of flooring material, such as laminate or vinyl installation services.
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.