Growing demand for green building projects is projected to keep service prices growing at high rates
Los Angeles, CA (PRWEB) October 22, 2014
Window tinting services have a buyer power score of 3.4 out of 5, indicating a moderately favorable purchasing environment for buyers. According to IBISWorld analyst Erick Delgado, this score reflects the buyer's ability to obtain the lowest price possible due to the large number of suppliers, low switching costs and the price-competitive nature of the window film installation market. IBISWorld estimates that there are over 10,000 vendors, which provides buyers with a substantial number of supplier options. However, recent demand growth has somewhat suppressed the buyer's ability to negotiate.
In the three years to 2014, the average price of window tint installation services has been rising at faster than normal rates due to a rise in demand, stemming from a 2011 Department of Energy (DOE) study, continues Delgado. The DOE study touted the environmental costs and benefits of retrofitting buildings with window films, causing businesses to take notice. In the wake of the recession, consumer confidence has ignited growth in corporate profit levels, the value of construction in the United States and private investment in home improvements during the three years to 2014. Growth in major downstream markets has resulted in heightened demand for window tinting services. Moreover, suppliers have experienced increases in purchasing expenses and wage costs over the past three years. As a result, vendors have been forced to pass on a portion of their increased costs to buyers as higher prices.
Fortunately for buyers, vendors' purchasing costs are anticipated to remain flat over the next three years, alleviating upward pressure on price and resulting in a slightly slower annualized rate of growth. Low price volatility during the six years from 2011 to 2017 promotes a stable purchasing environment for buyers by enabling them to accurately evaluate service prices over time. Also, growing demand for the service contributes to a low risk of bankruptcy among vendors, allowing buyers to feel more secure in planning future projects. For more information, visit IBISWorld’s Window Tinting 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 tinting and film services. Vendors install, retrofit and remove window tints and films, such as ultraviolet or safety film, for commercial and residential applications. This report excludes the procurement of automotive film and window tinting 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.