Los Angeles, CA (PRWEB) June 13, 2014
Scaffolding rental services have a buyer power score of 3.0 out of 5. This score reflects favorable conditions for buyers in the market in the three years to 2014. During the period, rental rates have been rising as a result of growing demand for equipment rental, which many small-scale contractors deem as a more cost-effective alternative than making outright purchases, says IBISWorld analyst Deonta Smith. Despite steadily rising prices, price volatility has remained extremely low. Favorable price trends and low volatility are supporting buyer power.
Low market concentration and mounting competition among scaffolding rental firms are further bolstering buyer power. Despite the presence of a few notable players, such as Harsco Corporation, Sunbelt Rentals and United Rentals Inc., the vast majority of the market is composed of small to midsize firms operating on a regional or local scale, continues Smith. While large-scale buyers can benefit by working with multinational suppliers that offer a myriad of products and services, small buyers can reap more cost savings when renting out equipment from regional or local operators.
On the other hand, rental firms face moderate risk from the supply chain, particularly from rising construction machinery and equipment prices. To counteract the impact of rising production costs, scaffolding equipment manufacturers anticipate passing on increased costs in the form of higher prices to their downstream buyers, such as rental firms. Because rental firms have to constantly update their inventory with the latest equipment to compete successfully in the market, they will likely raise their prices, placing downward pressure on buyer power. For more information, visit IBISWorld’s Scaffolding Rental procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help renters of scaffolding frames and erector sets. Scaffolding erector sets include rolling ladders, brackets, hangars, bases, jacks, drywall lifts, scaffold racks, ramps and carts. Renting or leasing scaffoldings can also include purchasing the scaffolding frame, platform or erecting services. Fencing and ladders are not discussed in this report.
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.