During the three years to 2014, the price of coring services is estimated to grow strongly on the back of rebounding industrial production index and growing demand for commodities
Los Angeles, CA (PRWEB) October 06, 2014
Coring services have a buyer power score of 2.7 out of 5.0, which indicates low-to-moderate purchasing power for buyers. The market is fragmented with a large number of small and medium-size firms. As a result, price-based competition has intensified among smaller suppliers, which aids buyer negotiation power. The financial stability of vendors also minimizes risk for buyers. The price of coring services, however, is expected to grow strongly during the three years to 2014, which has restricted buyer power.
“The strong growth in the price of coring services was facilitated by the limited availability of substitute services, which has made demand largely inelastic. However, the intensifying competition among small and medium-size suppliers typically prevents these firms from raising prices rapidly, which provides some relief to buyers,” according to IBISWorld business research analyst Agiimaa Kruchkin. IBISWorld estimates that the top four suppliers (Baker Hughes, Schlumberger, Halliburton and National Oilwell Varco) account for about 42.0% of the coring services market, which is indicative of medium level of market share concentration. Market concentration has remained relatively stable during the past three years due to steady demand. The moderate availability of suppliers provides some relief to buyer power, especially if the services are procured from small vendors because price-based competition is more intense among them.
Suppliers' input costs have risen slowly during the period, with the exception of average wages, and have had a little impact on pricing. As such, external demand drivers largely drove price growth for coring services during the three years to 2014. For instance, industrial production has picked up significantly following the recession and has driven demand for mining, oil drilling and gas extraction activities. Additionally, the value of construction rebounded strongly after the recession, which raised the need for commodities and, thus, coring projects.
“During the three years to 2014, the hourly fees for coring services recovered particularly quickly among the largest suppliers because the rebounding economy channeled demand to suppliers with the greatest expertise in the field. Consequently, buyer power declined slowly during the three-year period,” Kruchkin says. For more information, visit IBISWorld’s Coring Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of coring services, which involve obtaining recoveries of core samples for subsequent data evaluation. Suppliers provide services such as conventional core drilling, core isolation, horizontal coring, core analysis, anti-jamming system services, motor coring, oriented coring and core preservation, among others. Most of these services must be performed on-site. This report does not cover procurement of coring equipment.
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.