Prices are forecast to grow, though at a slow rate, as construction activity continues to pick up
Los Angeles, CA (PRWEB) November 13, 2014
IBISWorld estimates that steel framing services have a buyer power score of 3.6 out of 5, indicative of moderate buyer power in the market. Low market concentration and intensifying competition among steel framing contractors raise buyer power. Despite a few notable players, such as Schuff International Inc. and Sarens Group, most service providers are small contractors operating on a local or regional basis, says IBISWorld analyst Deonta Smith. Large firms offer a myriad of related services and specializations including light- and heavy-frame work and can leverage their expertise in steel framing to craft more effective and creative solutions; however, smaller contractors typically specialize in providing standardized services. Nonetheless, more new players are likely to enter the market to take advantage of the rebounding construction sector, thus ensuring market competition, which will underpin buyer power.
During the past three years, buyers have benefited from falling steel framing service prices and low price volatility. Low price volatility means buyers can take time in making their purchasing decisions without fear of major price spikes in the near future. Therefore, favorable price trends and low volatility boost buyer power for steel framing services, continues Smith. Unfortunately, steel framing service prices are expected to increase during the forecast period as vendors' operating cost are anticipated to rise on the back of higher steel prices.
Moreover, there is a wide range in price for steel framing services, which makes it challenging for buyers to budget their costs. Nevertheless, the need for steel framing services is anticipated to remain stable during the next three years due to consistent demand from downstream residential, nonresidential and road and highway construction sectors, which serves as a catalyst for steel framing solutions. The demand growth has been favorable for contractors, and prices are expected to slightly rise at an annualized rate of 0.9% in the three years through 2017. For more information, visit IBISWorld’s Steel Framing Services procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of steel framing services. Steel framing service providers install bars, rebar, setting rods, cages and mesh in structures to reinforce cooling towers, metal storage tanks and poured-in-place concrete. Steel framing is used to create a skeleton frame to support the roof, walls and floors of a building.
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.