Los Angeles, CA (PRWEB) July 05, 2014
Document destruction services have a buyer power score of 3.6 out of 5, reflecting favorable pricing trends and low price volatility. Although prices have been rising during the three years to 2014, the increase was marginal. Prices are expected to continue rising over the next three years at an even slower pace. Additionally, document destruction services are subject to a low level of price volatility overall, so buyers benefit from not having to deal with extreme price fluctuations. As a result, buyers can plan ahead for purchases and not have to worry that the price they pay will change dramatically. “Favorable price trends and low volatility increase buyer power for document destruction services,” says IBISWorld business research analyst Andrew Krabeepetcharat.
Despite a moderate level of market concentration, the desire to minimize unauthorized access to sensitive documents has led to substantial fragmentation in the market for document destruction services. The rise in local and regional service providers has come in response to buyers' increased need to reduce potential security breaches by employing locally based companies to dispose of documents. Sourcing document destruction services from local providers also allows buyers to save on fuel costs incurred while transporting documents. “Consequently, the increasing number of local and regional providers has challenged the dominance of national players like Iron Mountain and Brambles-owned Recall, providing buyers with more suppliers to choose from,” says Krabeepetcharat.
Additionally, high buyer power is underscored by low product specialization and low switching costs. Standards have been established for document destruction services to ensure the service being provided is adequate, and suppliers are reluctant to deviate from these standards. Because of this low level of specialization, buyers can choose a new supplier without worrying that the service provided will change. These factors allow buyers to source the services from a greater pool of suppliers. Major vendors include American Shredding Inc., Brambles Inc., Cintas Corporation and Gilmore Services Inc. For more information, visit IBISWorld’s Document Destruction Services procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of document destruction services. Document destruction and shredding services include the physical shredding of documents in a secure manner to protect information from theft or abuse. Suppliers that provide document destruction services dispose of a range of items, including paper files, DVDs, computer disks and film. Service providers include document management firms that are primarily engaged in records management, data protection and recovery and document destruction 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