Los Angeles, CA (PRWEB) October 07, 2014
IBISWorld estimates that land preparation services have a buyer power score of 3.4 out of 5. This score is indicative of moderate buyer power in the market. Over the three years to 2014, the rebounding US economy has led to overall renewed demand for mining, construction and agriculture operations, says IBISWorld analyst Agiimaa Kruchkin. Demand in these sectors, in turn, has fueled an upward trend in prices for land preparation services, limiting buyer power. In addition, a moderate level of specialization and the low availability of substitutes have further hampered buyer power. At the same time, the highly fragmented nature of the market has warranted a wide selection of service providers to choose from, which has aided buyer power to an extent.
There is a wide range in price for land preparation services, which makes it challenging for buyers to budget their costs. Nevertheless, the need for land preparation services is anticipated to remain stable over the next three years due to consistent demand from the mining, agriculture and construction sectors, continues Kruchkin. The demand growth has been favorable for suppliers, and prices are expected to continue rising in the three years through 2017.
The supply chain for vendors of land preparation services poses moderate risk for buyers, with some risk stemming from price fluctuations for various inputs, such as excavation machinery. However, in the three years to 2017, buyers are not expected to face a high degree of risk with the supply chain, assuming that demand remains stable. Moreover, the diversification of land preparation services across several markets, including agriculture, has caused vendor financial risk to decline due to suppliers' reduced reliance on a single market, leading to a moderate level of risk overall. Buyers should determine the need and frequency for land preparation services and then enroll in contracts to help mitigate long-term costs and rising prices. For more information, visit IBISWorld’s Land Preparation Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of land preparation services. Types of relevant services include digging, demolition, rock removal, timber removal, land reclamation, earth moving, pile driving, trenching and blasting. These services are used to clear and prepare land sites for new developments; buyers typically procure land preparation services for purposes such as mining, construction, agriculture and engineering projects. This report does not cover building demolition services. Also, the report excludes general contracting 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.