Asphalt Paving Services Procurement Category Market Research Report from IBISWorld Has Been Updated

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The price of asphalt paving services has increased during the past three years due to rising wage costs and an uptick in demand brought on by recovering construction markets. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Asphalt Paving Services in its growing collection of procurement category market research reports.

IBISWorld industry market research
Service prices are anticipated to increase in the next three years due to continued rising demand; however, falling operating costs will shield prices from rising significantly.

Asphalt paving services have a buyer power score of 2.7 out of 5. This score signifies that buyers have a moderate level of negotiating power in the market. “Buyers derive power primarily from the low level of market share concentration and moderate specialization,” says IBISWorld procurement analyst Deonta Smith. “However, the low availability of substitutes negatively impacts buyer power.”

A wide range of contractors perform asphalt paving services. Therefore, buyers can look to multidisciplinary construction firms, such as Granite Construction Inc. or Lane Construction Corporation, to procure these services. “Buyers can also procure services from locally based service providers, which may only provide niche services under the asphalt paving umbrella,” adds Smith. Although small operators and paving specialists make up the majority of service providers, larger multidisciplinary construction firms have gained market share by dominating specific markets (e.g. commercial construction, industrial construction, highways and utilities). Nonetheless, the wide selection of vendors increases buyer power.

Likewise, the moderate specialization of asphalt paving services benefits buyers. Buyers may require slightly customized solutions, given their particular environments and uses for the paved surface, but overall, project requirements will not vary noticeably. As a result, any operator, regardless of technological capacity, can fulfill most project needs, further expanding a buyer's options when selecting a vendor.

On the other hand, there are several factors that work against buyers of asphalt paving services. For example, the lack of substitutes for the services narrows the buyer's scope of alternatives. If a buyer is not satisfied with the firm that serves their operating sector, procuring services from a concrete paving service contractor may be the only other option. Despite this factor, considering this alternative can help buyers obtain leverage by creating competition during the negotiation process. For more information, visit IBISWorld’s Asphalt Paving Services procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of asphalt paving services. Providers of these services pave a variety of surfaces with asphalt, including parking lots, driveways, walkways and shopping and retail centers. Many service providers also offer asphalt resurfacing, patching, sealcoating and crack sealing services. This report excludes road and highway asphalt paving services.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

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 or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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