Growth in construction activity is projected to increase demand and prices for acoustic engineering services.
Los Angeles, CA (PRWEB) June 10, 2014
Acoustic engineering services have a buyer power score of 3.4 out of 5. This score is indicative of favorable conditions for the buyer, despite growing demand, high specialization and switching costs, and the low availability of substitutes. According to IBISWorld procurement analyst Keiko Cadby, “Buyers gain advantages due to low market share concentration and the stable input costs and financial health of acoustic engineering service providers.”
In the three years to 2014, the recovering US economy has led to overall renewed funding and demand for construction and related activities, which has fueled an upward trend in prices for acoustic engineering services. The need for these services is anticipated to grow over the next three years due to consistent demand from industrial production and construction markets, as well as greater government funding for transportation development. “This demand growth has been favorable for suppliers, and prices are expected to continue rising, although slowly, in the three years to 2017,” says Cadby. Acoustic engineering services are also specialized and require operators to create customized solutions for buyers, restricting buyer power. The availability of substitute services is low, because projects and programs require highly skilled workers to provide acoustic engineering solutions.
However, the market's low concentration is favorable for buyers. Most providers are nonemployers and small companies, which compete heavily on price, driving up negotiating power for buyers. Although the market's few large companies have set prices due to brand quality, low market share concentration gives buyers a variety of options to choose from when sourcing acoustic engineering services. Buyers are encouraged to bundle their project needs from providers that can offer related services, and elicit multiple bids from vendors to increase options and bolster price competition. The top four vendors in the market are Fluor, Raytheon, Parker Hannifin and Jacobs Engineering Group.
For more information, visit IBISWorld’s Acoustic Engineering Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of acoustical engineering services. These services include architectural and environmental acoustic consulting as well as mechanical services, such as noise and vibration and building structural vibration services. This report does not include soundproofing construction materials, sound studio services or sound engineering equipment.
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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