An ongoing need for communication between businesses and policymakers has supported demand
Los Angeles, CA (PRWEB) October 02, 2014
Government relations services have a buyer power score of 3.4 out of 5. This score reflects moderate negotiating strength for buyers stemming from strong demand for government relations services during the past three years. “This strong demand is a result of companies seeking ways to open up lines of communication with key policymakers,” says IBISWorld research analyst Agiimaa Kruchkin. “Being involved in legislative processes is important to buyers because of the potential consequences laws could have on their respective business sectors.” Communicating with government representatives is an important strategic process for business owners because many laws will either directly or indirectly have an impact on how their businesses operate. Thus, buyers continue to rely on the skills and expertise of suppliers to help influence public policy in a way that is beneficial for all parties involved.
This ongoing demand, coupled with strengthening corporate profit levels and an increasing number of businesses, has caused service prices to rise during the past three years; prices are also expected to continue rising in the three years to 2017. Although increasing prices have hurt negotiation power, buyers have benefited from low price volatility, which has reduced the risk of large price swings for government relations services.
Buyers currently benefit from a low level of market share concentration. “Many new suppliers continue to enter the market, which gives buyers more choices during negotiations,” says Kruchkin. “Larger public relations firms with diverse service lines have also started to incorporate government relations services to bolster their portfolios, which further increases the intensity of competition among vendors.” Firms in this market can obtain moderate to high profit margins for their services, which opens up potential opportunities for buyers to negotiate prices down, particularly if they enter into long-term contracts. Current major service providers include Waggener Edstrom, Omnicom Group, Edelman Public Relations Worldwide and Ruder Finn. For more information, visit IBISWorld’s Government Relations Services procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of government relations services. Suppliers assist buyers by influencing the actions and policies of government officials to help achieve mutually beneficial outcomes. Government relations services are meant to bridge any disconnect that may arise between businesses and political leaders on the effects legislation could have on a given sector. Service providers may form political action committees, build direct relationships with government officials and staff and act as a liaison between the government and their client. Government officials may include senators, congressional staff, regulators and other political representatives. This report does not include services for investor relations, internal relations, crisis management or public relations.
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.