Maintenance Turnaround Services Procurement Category Market Research Report Now Available from IBISWorld

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While low price volatility and the financial stability of suppliers promote negotiating power for buyers of maintenance turnaround services, the high level of specialization required to perform services limits buyer power. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Maintenance Turnaround Services to its growing collection of procurement category market research reports.

IBISWorld industry market research
Price growth is forecast to accelerate over the next three years due to stronger growth in industrial production activity

On a scale of one to five, maintenance turnaround services have a buyer power score of 3.0. IBISWorld market research analyst Sean Windle says, "This score reflects a shared power balance between buyers and suppliers when arranging supply agreements." Major vendors in the market include Emerson Electric, Halliburton, Sulzer and Willbros.

The primary factor boosting buyer power is low price volatility. "While prices have increased over the past three years, individual year-to-year growth has been steady, rising in line with increases in oil and gas production, electric power consumption, manufacturing and other industrial production activity," says Windle. Because no single customer market has an overwhelming influence in terms of demand, the broad array of end markets for maintenance turnaround services supports stable price growth. While oil and gas refineries are one of the largest markets for suppliers, their turnarounds are performed on a consistent schedule (usually every three to four years during January and February). These factors promote stability when there are fluctuations in demand and pricing.

The moderate level of concentration among suppliers of maintenance turnaround services both hinders and strengthens buyer power. The top four suppliers account for about 35.0% of revenue. While buyers generally have less leverage when it comes to negotiating with these suppliers, the market's many small-scale vendors are usually more flexible and accommodating.

Factors hurting buyer power include the high level of specialization involved with performing the services, which take months and sometimes years to plan and execute. The high level of specialization also contributes to high switching costs; much of the logistical and planning work will have to be redone when changing suppliers. Additionally, buyers have no viable substitutes for maintenance turnarounds. Some repair and maintenance services can be conducted on-stream (i.e. without halting operations); however, the thorough and comprehensive nature of turnaround services requires a partial or complete shutdown of operations. For more information, visit IBISWorld’s Maintenance Turnaround Services procurement category market research report page.

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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of maintenance turnaround services, which are planned, temporary shutdowns of an industrial process unit. Vendors, which include industrial service companies and construction contractors, offer services that help continued production activity and reduce the risk of unplanned outages or catastrophic failures. Relevant services include testing, cleaning and drying storage tanks and vessels; draining and vacuuming vessels and tanks; and other related process improvement services. Buyers for these services include petrochemical processors, oil refiners, natural gas producers, power generators, steel producers and pulp and paper plant operators.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

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.

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Gavin Smith
IBISWorld Inc.
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