As construction activity continues, the price of plastering and drywall services is forecast to grow
Los Angeles, CA (PRWEB) October 20, 2014
Plastering and drywall services have a buyer power score of 1.7 out of 5. According to IBISWorld procurement analyst Ian Buchanan, “this score represents weak buying power resulting from rapidly increasing prices and a low availability of practical substitutes.” Low market share concentration, however, provides buyers with a bit of negotiation leverage.
Over the three years to 2014, the price of plastering and drywall services is expected to rise rapidly. Due to improving economic conditions, the construction sector has experienced a boom in activity during this period. Consequently, residential and nonresidential construction markets have increased their demand for plastering and drywall services. As a result, suppliers have felt reduced pressure to lower prices to remain competitive and buyer power has decreased. In addition, gypsum building materials, such as drywall and plasters, are estimated to experience accelerated price growth during this period. Because these materials are the primary input costs for suppliers of this service, providers are expected to face rising operating costs during this three-year term. Suppliers will raise the price of their service further to cover expanding costs. “Unfortunately for buyers, both demand and input costs are anticipated to be highly volatile over the three years to 2014,” says Buchanan. As a result, suppliers will be less willing to negotiate lower prices to mitigate the negative effects of sudden, unexpected cost fluctuations or declines in demand.
The lack of practical substitutes to plastering and drywall services further hampers buying power. There are multiple alternatives to using plaster and drywall, but these substitutes will often result in much higher costs. Armed with the knowledge that buyers have a limited number of options, suppliers gain pricing leverage and buyer power is reduced. The market, however, has a large number of suppliers with no major player controlling significant market share, so vendors are highly competitive. The high level of competition forces suppliers to offer incentives and bid down competitors to try to secure contracts, slightly uplifting buying power. The largest players in the market are KHS&S Contractors, Performance Contracting Group, Precision Walls Inc. and Standard Drywall Inc.
For more information, visit IBISWorld’s Plastering and Drywall Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of plastering and drywall services. Suppliers provide drywall installation and repair as well as plaster installation services. These services are used in commercial and residential construction projects, whether they are new builds or renovations. This report excludes insulation 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.