Prices are forecast to continue to grow at a slow rate during the three years to 2017 due to growth in the construction sector and rising input costs
Los Angeles, CA (PRWEB) November 04, 2014
Buyers of concrete installation services have a buyer power score of 3.7 out of 5, which reflects significant negotiation power for buyers. “The concrete installation market is extremely fragmented, which benefits buyers with the choice of many vendors,” according to IBISWorld business research analyst, Kevin Young. The value of residential and nonresidential construction has increased during the three years to 2014 due to the rebounding economy following the building slump during the recession. In addition, manufacturing structure investments grew at a moderate rate. Rising demand trends decreased buyer negotiation power as more buyers competed for existing suppliers. However, low barriers of entry have allowed suppliers to quickly meet rising demand in the market place, which helps to mitigate price increases by reducing the time spent in shortages.
Some aspects of the concrete installation services market, however, are detrimental to buyer negotiation power. The rising price of cement, which is the main input for concrete installers, has driven market prices up and cut into supplier profitability, which caused suppliers to pass these costs on to consumers in the form of rising prices. However, price growth has been minimal due to a highly competitive and fragmented market with low average profit margins, leading suppliers to engage in fierce price-based competition to attract new buyers. This has benefited buyers by mitigating major price spikes. Low price volatility benefits buyers by allowing them to budget forecasts and project management easier. Buyers suffer from a lack of substitutes, however, which causes them to rely on concrete for their needs.
“Buyers benefit from low product specialization because the concrete installation process can be easily learned, as evidenced by the frequency at which new suppliers have entered the market to meet demand spikes,” says Young. Furthermore, buyers of basic concrete installation are empowered by moderate switching costs. However, buyers of large-scale custom concrete installation services will face heightened switching costs. Major vendors include Baker Concrete Construction Inc., Webcor Builders Inc. and Holcim Inc. For more information, visit IBISWorld’s Concrete 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 concrete installation services. Contractors are engaged in a variety of services, including exterior concrete stucco, curb construction, sidewalk or ramp construction, retaining wall construction, parking lot construction, concrete patio construction and foundation and footing construction services. This report excludes masonry and stonework 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.