Landscape construction and maintenance service prices have increased in line with rising demand and operating costs
Los Angeles, CA (PRWEB) August 20, 2014
Landscape construction and maintenance services have a buyer power score of 3.6 out of 5, which indicates moderate purchasing power for buyers. Buyers derive power primarily from the low level of market share concentration, says IBISWorld analyst Deonta Smith. However, high price volatility and the low availability of substitutes negatively impact buyer power.
Low market concentration and intensifying competition among landscape construction and maintenance firms raise buyer power. Despite a few notable players, such as ValleyCrest Companies, ABM Industries Inc. and EMCOR Group Inc., most service providers are small firms operating on a local or regional basis. Large-scale firms offer a myriad of related services and can leverage their expertise in landscape construction to craft more effective and creative solutions, while small-scale contractors often specialize in providing niche services. Nonetheless, more new players are likely to enter the market to take advantage of the rebounding construction sector, thus ensuring market competition, which underpins buyer power, continues Smith.
The price of landscape construction and maintenance services is expected to grow over the three years to 2014. External demand drivers have largely driven price growth for the market's services during this period. Residential construction activity has picked up significantly since the recession, driving demand for landscape construction and maintenance activities. Additionally, the number of businesses operating in the United States has risen, raising the need for landscape maintenance.
However, service prices have been highly volatile, facilitated by the limited availability of substitute services, which make demand largely inelastic among certain buyer segments. Fortunately for buyers, the intensifying competition among small-scale contractors is expected to prevent them from raising prices rapidly in the coming years, helping buyers. For more information, visit IBISWorld’s Landscape Construction & Maintenance procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of landscape construction and maintenance. Landscape construction includes, but is not limited to, the building of driveways, patios, ponds, gardens, arbors, landscape lighting, swimming pools and spas, fountains, decks, irrigation systems and fencing. Maintenance includes seasonal cleanups, mowing, plant fertilization, weed control and cultivation. This report excludes landscape architecture and design services. This report also excludes any of the materials and supplies used to construct and maintain the landscape.
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.