Prices are expected to increase at a slower rate during the next three years than in the past three due to an expected slowdown in construction as the economy is no longer boosted by strong government spending and low interest rates.
Los Angeles, CA (PRWEB) May 06, 2014
Waterproofing coatings have a buyer power score of 3.5 out of 5. This score reflects better negotiating conditions for buyers. “Buyer power has been decreasing during the past three years but is expected to increase in the future as prices increase at a slower rate and competition among suppliers continues to intensify,” says IBISWorld procurement analyst Pierre Dessertenne.
Competition among suppliers, especially manufacturers, is expected to continue to strengthen buyer power. Strong marketing efforts by manufacturers combined with product and financial incentives to purchase from one supplier over another will make buyers and distributors more willing to buy waterproofing coatings both as supply agreements and immediate sales. “Indeed, competition among manufacturers will benefit distributors as well as their buyers due to increased sales and price competition,” says Dessertenne. Major suppliers include Home Depot, Sherwin-Williams, PPG Industries Inc. and RPM International Inc.
Over the next three years, demand for waterproofing coatings is expected to increase at a slower rate than during the past three years. Demand was inflated in the past three years by a bounce back of the housing and construction markets, increased private spending on home improvements and greater government spending. Interest rates are expected to increase, limiting investments and thus the biggest demand sector for waterproofing coatings: construction. Additionally, foreign demand is forecast to decrease or at least stagnate as global economic growth stalls and spending on large infrastructure projects is reduced. Buyers will therefore see prices increase at a slower pace than the overall economy.
Production costs for waterproofing coatings have been steadily increasing along with the price of key inputs during the past three years, which has been reflected in constant price increases. The recent decrease in fossil fuel prices (a significant key input) is expected to continue as some oil producers increase production, lowering the market price for crude oil, and therefore diminish the rate at which prices have been increasing. Buyers are unlikely to face shortages or large price increases during the next three years allowing for more flexibility in the purchase of waterproofing coatings and short-term purchase decisions.
For more information, visit IBISWorld’s Waterproofing Coatings procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of waterproofing coatings. Waterproofing coatings prevent an item from absorbing water or letting it filtrate through, effectively making it water resistant. Waterproofing coatings include coatings based on materials such as urethane, asphalt and epoxy. Waterproofing coatings can be sold by chemical manufacturers, chemical and coatings wholesalers, and a range of retailers. This report excludes water reducing agents.
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.