The price of services has increased during the past three years due to rising input costs and an uptick in demand brought on by the recovering housing market.
Los Angeles, CA (PRWEB) August 22, 2014
Concrete pumping services have a buyer power score of 3.3 out of 5. This high score reflects favorable conditions that have bolstered buyer negotiation power in the three years to 2014, particularly the market's low level of market share concentration. In recent years, regional and local vendors have grown in numbers in response to the rising number of housing starts. “The number of housing starts accelerated during the past three years as economic growth improved,” says IBISWorld business research analyst, Deonta Smith. Most noticeably, housing starts increased substantially in 2012; consequently, this trend has led to greater demand for concrete pumping services (used to lay foundation for new structures) among residential contractors. Moreover, because most concrete pumping service providers operate on a local or regional level, buyers have access to a number of vendors, which increases buyer negotiating power.
Likewise, low levels of specialization and minimal switching costs further underscore buyer power. Buyers will find the services to be nearly identical across vendors. Service providers also strive to adhere to high standards established for concrete pumping and related services to avoid possible compliance costs relating to structure foundation stability. By meeting regulatory standards, vendors are able to maintain their reputation, which is crucial in the concrete pumping service market. These factors allow buyers to procure the services from a larger pool of vendors without fear of compromising quality.
While prices for concrete pumping services have been trending upward during the period, the price volatility has been extremely high. “Buyers lose negotiating power from a high level of price volatility because they are then incentivized to accept service prices when they are deemed advantageous,” says Smith. Fortunately, current market price trends are favorable and boost buyer power for concrete pumping services. During the three years to 2017, prices are forecast to continue to rise, though at a slower rate. Major vendors include Cemex SAB de CV, CRH PLC and Holcim Inc. For more information, visit IBISWorld’s Concrete Pumping Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of concrete pumping services. Service providers operate batch and mix plants to manufacture concrete for delivery to buyers in an unhardened state. Sand and gravel pumping services are excluded from this report.
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.
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