Landscape Architecture & Design Services Procurement Category Market Research Report from IBISWorld has Been Updated

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Demand for landscape architecture and design services fell during the recession, but it has been rising steadily during the three years to 2014, driving up prices for buyers. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Landscape Architecture & Design Services in its growing collection of procurement category market research reports.

IBISWorld procurement market research
Rising operating costs are forecast to drive up prices in the next three years

Landscape architecture and design services have a buyer power score of 2.4 out of 5. This score reflects moderately poor negotiation conditions for buyers resulting from high demand, a low availability of substitutes and high product specialization within the market. Demand for landscape architecture and design services dropped during the recession, but it has been rising steadily during the three years to 2014, driving up prices for buyers. As demand is restored, buyers continue to lose negotiating power, even though prices are still below prerecession levels. Landscape architecture and design services provide buyers with customized solutions that untrained suppliers cannot easily produce. This limits the number of suppliers capable of offering the service, which, in turn, limits the number of vendors that buyers have to choose from and the extent to which supply can keep pace with demand. “Consequently, buyers are facing suppliers with limited incentive to negotiate or maintain lower prices,” according to IBISWorld business research analyst Daniel Krohn.

Buyer leverage is projected to continue to shrink during the next three years as demand drivers such as business growth, the value of residential construction and government funding for universities rise and apply additional upward pressure on demand. Rising demand will offset competitor growth forecast for the next three years and further limit the amount of suppliers available to the buyer. “Buyer power is, consequently, projected to continue to be strained,” says Krohn.

Nonetheless, buyers maintain some leverage in the market thanks to low market concentration. Low market concentration increases the viability of top-tier suppliers and keeps barriers to entry in the market at bay. The landscape architecture and design market has, as a result, remained somewhat competitive despite recent surges in demand.

The complexity and size of the buyer's project will impact the amount of negotiating power it has. Buyers with larger, more complex facilities will be better able to attract both large and small service providers, increasing the number of suppliers available to them, the value that suppliers are likely to put on their business and their buyer power. Major vendors include Hammel, Green & Abrahamson Inc., AECOM and Belt Collins. For more information, visit IBISWorld’s Landscape Architecture & Design Services procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of landscape architecture and design services. Landscape architecture and design service suppliers prepare drawings and specifications for the development of land areas. They use their in-depth knowledge of grading, drainage and horticultural and structural spacing to plan and create useful, attractive arrangements of natural and constructed elements that conform to governing codes and regulations. This report excludes landscape construction services and maintenance services like installing and caring for trees, lawns and gardens.

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
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
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 or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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