In the three years to 2017, prices are projected to rise as the rebounding economy stimulates further growth in the number of businesses, further driving demand for this service
Los Angeles, CA (PRWEB) June 04, 2014
Employment law services have a buyer power score of 3.4 out of 5, indicative of moderate buyer power in the market. The low level of viable substitutes and significant service specialization undermine buyer power. At the same time, the highly fragmented nature of the market, low price driver volatility and negligible switching costs boost buyer negotiation power, offsetting the impact from negative factors. “Suppliers in this market are more willing to negotiate lower service prices due to heavy price-based competition, especially among small and medium-size vendors,” says IBISWorld procurement analyst Agiimaa Kruchkin. “Furthermore, the cost of switching to a new supplier is low, which encourages vendors to foster their relationships with buyers for repeat business.”
Low switching costs also benefit buyers of employment law services in negotiations when renewing their contract because they can use this factor as leverage with their current supplier. In addition, the low price volatility has also contributed to moderate buyer power. “Low price volatility indicates that buyers are not at high risk for price spikes due to steady input costs, in turn maintaining buyer negotiation power,” adds Kruchkin.
Macroeconomic conditions have largely favored suppliers over the three years to 2014. Namely, the number of businesses has trended upward, albeit slowly, boosting demand for employment law services. Similarly, corporate profit has expanded, driving demand, and therefore prices, of employment law solutions. As a result, prices have been trending upward at a moderate rate, restricting buyer power.
As the economy continues to recover over the three years to 2017, businesses will expand their operations and hire more employees. This trend will further boost demand for employment law services, thereby increasing service prices and restricting buyer power in the next three years. Buyers are advised to research employment law firms ahead of time to create a short list of firms from which to potentially procure these services when the need arises. 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 mainly focuses on mediating the relationship between employees and employers, trade unions and the government. Employment lawyers ensure that businesses are in compliance with laws by reviewing employee manuals and contracts, advise businesses on employment issues and represent businesses in lawsuits. Pertinent issues concern minimum wage laws, overtime pay, workplace regulations, disability leave, maternity leave, workplace hazards, discrimination and harassment. This report does not cover employee benefits law, labor disputes and malpractice and negligence law 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.