Prices are forecast to keep growing, although at a slower rate, in the next three years as construction activity continues to pick up
Los Angeles, CA (PRWEB) October 10, 2014
Window and door installation services have a buyer power score of 2.9 out of 5. According to IBISWorld analyst Deonta Smith, the buyer score reflects a solid market for buyers in terms of their ability to negotiate favorable contractual terms; however, during the three years to 2014, buyer purchasing power declined mainly due to rising prices. Market service prices are heavily dependent on the trends and fluctuations in residential, commercial, industrial and other construction markets.
The value of residential and nonresidential construction increased during the three years to 2014, as the economy rebounded from the building slump during the recession. In addition, private spending on home improvements grew at a strong rate. These trends led to steady price growth for window and door installation services, negatively affecting buyers, continues Smith. In the three years to 2017, prices are forecast to continue their growth trajectory as the economy stabilizes and construction activity continues to rise. This will further restrain buyers' ability to negotiate favorable prices.
Moreover, the rising prices of wood paneling and windows, which are the main inputs for market suppliers, have also driven market prices up, leaving buyers with less room for price negotiation. In addition, the market's high switching costs further limit buyer power, giving suppliers more leverage to establish prices. Likewise, the lack of substitutes has given suppliers greater flexibility in determining prices, further hurting buyers.
Nevertheless, high market fragmentation and mounting competition benefit buyers by creating a larger pool of suppliers to choose from. Some major market suppliers include Sears Holding Corporation, Pella Corporation and Milgard Manufacturing Inc. Suppliers are increasingly engaging in price-based competition to win new customers and maintain or gain market share in a highly saturated market. In recent years, this has allowed buyers to bid multiple suppliers against each other, and create more favorable price terms. While market fragmentation has benefited buyers, its impact has been mitigated by rising services prices brought on by a postrecession surge in construction activity. For more information, visit IBISWorld’s Window & Door Installation Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of window and door installation and erection services. Suppliers provide garage door and prefabricated window and door installation, entryway and exit framing, metal stud installation and store fixture installation 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.