Increased government expenditure and rising incarceration rates will contribute to higher demand, resulting in price growth; however, growth will continue to be moderated by a rising number of suppliers and competition from electronic substitutes
Los Angeles, CA (PRWEB) May 27, 2014
Court reporting services have a buyer power score of 4.6 out of 5, reflecting very favorable market conditions for buyers and a high amount of buyer negotiating power. Factors increasing buyer power include a flat recent price trend, low price volatility, very low market share concentration and a wide variety of stable suppliers with little risk associated with purchasing the service. Thanks to these factors, the market is in prime condition for buyers looking to purchase court reporting services. “A flat recent price trend, largely due to declining demand stemming from reduced government expenditure and falling crime and incarceration rates, has benefited buyer power as suppliers compete to gain business,” says IBISWorld procurement analyst Michelle Hovanetz. “Low and steady price growth is expected in the coming years due to increased government expenditure and, therefore, higher court budgets.” Although this price growth slightly reduces buyer power, the increase is minimal and is not significant enough to impact the overall positive purchasing environment for buyers.
Services are fairly standardized, increasing competition as most suppliers are comparable and switching costs to move from one to another are very low. The total number of court reporting service suppliers has increased slowly in recent years. The majority of suppliers are freelance or very small businesses. “The large number of competitors and low market share concentration among service providers help to moderate price increases and provide buyers with leverage in negotiations,” adds Hovanetz. “In addition, price shock due to supply chain problems is unlikely.” A stable supply chain, along with a wide variety of vendors, ensures the availability of services.
The only significant detraction from buyer power is that court reporting services have no low-cost substitutes that offer the same degree of service. While buyers benefit from declining demand due to electronic reporting, these systems are still far from perfect and are primarily only used as a cost-cutting alternative, not as a preferred method of reporting. For more information, visit IBISWorld’s Court Reporting Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of court reporting services. Court reporters create word-for-word transcriptions of legal proceedings and public events from stenotype shorthand. This report includes stenographers who provide real-time closed captioning of meetings, conferences, live television broadcasts and other events. Non-live television and film subtitling are not included within this report.
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.