Demand for products have increased during the past three years due to a rebounding nonresidential construction sector.
Los Angeles, CA (PRWEB) June 14, 2014
Commercial concrete pipes have a buyer power score of 3.1 out of 5. This score signifies a medium level of buyer negotiating power in the commercial concrete pipe market. “Low levels of product specialization positively influence buyer power, while a moderate market share concentration and low availability of substitutes limit buyer power,” says IBISWorld procurement analyst Deonta Smith.
A benefit to buyer power is the low level of specialization of commercial concrete pipes. “Buyers have the option of purchasing precast concrete pipes that are standardized and readily available or concrete pipe system components,” says Smith. Suppliers' existing concrete pipe stock may consist of various specifications made compatible with differing end-user functions; however, the products themselves only differ in design and other small features. As a result, buyers gain purchasing power. Having standardized products expands the range of suppliers from which a buyer can choose. Major suppliers include Cemex SAB de CV, County Materials Corporation, Cretex Companies and CRH PLC.
On the contrary, rising market share concentration negatively impacts buyer power. While small-scale operators do account for the majority of the suppliers, large-scale suppliers have gained significant market share by monopolizing entire regions, limiting a buyer's options. Buyers can mitigate the negative effect of rising market share concentration by entering purchase contract agreements with only one commercial concrete pipe supplier, which allows buyers to lock in lower concrete pipe prices.
The lack of substitutes for commercial concrete pipes further narrows the buyer's scope of possibilities. Only flexible pipes can serve as an alternative to commercial concrete pipes. These pipes are priced lower but are not as cost effective in the long run because they have a shorter service life. Therefore, choosing to purchase the alternative reduces a buyer's negotiating power because there is no perfect alternative to commercial concrete pipes.
For more information, visit IBISWorld’s Commercial Concrete Pipes procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of commercial concrete pipes. Commercial concrete pipe manufacturers produce commercial grade concrete pipes used specifically for commercial infrastructure needs, such as storm water drainage and water transportation.
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.