As the commercial construction market improves and the number of businesses increase, demand for snow removal services has been on the rise and has pushed prices upward
Los Angeles, CA (PRWEB) September 13, 2014
Snow removal services have a buyer power score of 3.5 out of 5, which reflects an advantage for buyers in the market. Buyers have many purchasing options when dealing with suppliers, such as multiple pricing models and a wide selection of related services. “Because snow removal services are seasonal, buyers have ample time to thoroughly research and evaluate suppliers before entering into a supply contract,” according to IBISWorld business research analyst, Scott Winters. These favorable market factors effectively offset the risk imparted by unstable input costs and unpredictable snowfall; this leaves buyers with the upper hand during negotiations.
The market for snow removal services is extremely fragmented with more than 22,000 total suppliers in the United States and the vast majority of them operating as nonemployers catering to their local area. Major vendors include The Brickman Group Ltd., USM Inc. and ValleyCrest Companies. Nonetheless, a large selection of suppliers allows buyers to compare multiple bids with ease and enhances price competition in the market. Industry certifications give buyers valuable insight into a supplier's potential performance, which improves the likelihood of hiring a qualified supplier. Buyers can take advantage of a number of different pricing models such as per-occurrence and per-season models. With adequate research, buyers can select the pricing model that maximizes value and minimizes risk and thus boosts their buyer power further.
However, a few market characteristics work against buyers such as the lack of substitute services and the risk of spiking input costs. “For most buyers, snow removal services are a necessary purchase, which reduces the availability of substitutes and transferring power into the hands of suppliers,” says Winters. Another important risk facing buyers is the price of deicing salts and chemicals becoming prohibitively expensive as the winter season progresses. Input cost increases can cause the price of snow removal services to climb steeply and hurt buyer value. Lastly, unpredictable snowfall could result in buyers paying too much for services if there is less snow than expected or paying extra fees if there is more snow than expected. However, buyers should expect to find a high quality supplier at a reasonable price. For more information, visit IBISWorld’s Snow Removal Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of snow removal services. These services are generally sold to businesses that need to clear snow from their parking lots or sidewalks. Suppliers include nonemployers, sole proprietorships, specialized snow management companies and diversified maintenance firms. Snow removal services include snowplowing, shoveling, roof clearing, snow hauling and disposal, deicing and salting. Although some suppliers provide additional services, this report does not include general maintenance services such as landscaping, exterior grounds maintenance, repair or janitorial 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
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.