Los Angeles, CA (PRWEB) August 04, 2014
Glazing services have a buyer score of 2.5 out of 5, indicating a moderately favorable purchasing environment for vendors. This score reflects current and future pricing trends that limit the buyer's ability to negotiate down historically high labor rates. According to IBISWorld research analyst Erick Delgado, other factors that negatively affect buyer power include a limited availability of substitutes and the risks involved with switching contractors midjob. Buyers benefit, however, from low market share concentration, low vendor financial risk and a reduction in service price volatility. Major vendors include Apogee Enterprises Inc., Enclos Corp., Nippon Sheet Glass Co. and Walters & Wolf.
The highly fragmented nature of the glazing services market encourages price-based competition among contractors, which boosts buyer negotiating power. But as the economy continues to recover, demand from key downstream markets, such as nonresidential construction, are anticipated to increase, which will provide contractors with more flexibility to raise total bid prices. “Expected rises in overhead costs and material prices will put pressure on vendors' profitability,” Delgado says. “As a result, service prices are anticipated to increase in the three years to 2017, weakening buyer power.”
Although volatility in demand from the construction sector is high, price growth is forecast to stabilize during the three years to 2017. This is a result of rising demand for retrofitting exterior glass facades and curtain walls, and steady demand for replacement and repair services, which together account for a significant share of market revenue. Low price volatility promotes a stable purchasing environment for buyers by enabling them to accurately evaluate labor rates over time. Moreover, growing demand for the service contributes to a low risk of bankruptcy among contractors, allowing buyers to feel more secure in planning extensive building projects. For more information, visit IBISWorld’s Glazing Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of glass and glazing installation and repair services. Contractors provide design services, fabrication, installation, repair and replacement of glasswork for commercial, institutional and residential buildings. Suppliers select, procure, cut and install glass panels for glass partitions, large windows, glass doors, glass canopies, skylights, curtain walls (glass building envelopes), glass facades, and other structural or nonstructural glass enclosures. Although some vendors provide design services, this report does not focus on prices for those activities.
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.