Strong growth in nonresidential construction activity and higher corporate profit levels have propelled waterproofing service prices higher during the three years to 2014.
Los Angeles, California (PRWEB) August 14, 2014
The buyer power score for the waterproofing services market is 3.3 out of 5, indicating favorable purchasing conditions for buyers. Demand for waterproofing services has increased moderately compared with the strong rise in construction activity during the past three years. IBISWorld Business Research Analyst Kiera Outlaw says, “Considerable growth in input costs has also placed upward pressure on prices during the period; however, buyers have benefited from low market share concentration coupled with low price volatility.” Major vendors in the waterproofing market include Allied Waterproofing Systems Inc., Liberty Waterproofing Services and RNK Construction Specialties.
While waterproofing service prices have been on the rise, low market share concentration has aided buyer power during the period. “Buyers are encouraged to leverage the competitive environment during the negotiation process by pitting supplier bids against one another to obtain the best price,” says Outlaw. However, the market does display low profitability on average, indicating that suppliers are typically inflexible on pricing. While some suppliers may charge a lower rate, buyers should ascertain if the quality of the service is up to par. Moreover, suppliers tend to offer a range of services, so those unwilling to negotiate on price for waterproofing may be more flexible when a number of services are bundled under one project.
Although overall market conditions have been favorable for buyers, a few characteristics have worked against buyer power, including the low profit margins and low availability of substitute services. Waterproofing services are essential in ensuring the structural integrity of a building or structure. Facilities that are not properly waterproofed run the risk of falling into disrepair at a swifter rate, and the cost to heat and cool the facility can be affected. Unfortunately for buyers, there are no viable alternatives for waterproofing services. Despite this, low price volatility during the period has allowed buyers to easily contract suppliers to perform required waterproofing services. Buyers can secure their waterproofing services without the risk of sudden price increases making it easier to budget for the expense. For more information, visit IBISWorld’s Waterproofing Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of waterproofing services. Suppliers provide services that fix and prevent water leaks. Types of waterproofing services include clay bentonite waterproofing, retaining wall waterproofing, the use of water repellents and vapor barriers. These services are primarily conducted by contractors, both general contractors and smaller, owner operators. This report excludes other coating and caulking services, such as damp proofing and corrosion control 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
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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.