The construction sector has been improving with the economy, and prices of acoustical and insulation services have been gradually rising
Los Angeles, CA (PRWEB) December 05, 2014
Acoustical and insulation services have a buyer power score of 3.0 out of 5. According to IBISWorld analyst Keiko Cadby, this score is indicative of mixed conditions for the buyer, due to growing prices, moderate specialization and low availability of substitutes. Buyers gain advantages due to low market share concentration and stable financial health of acoustical and insulation service providers.
The acoustical and insulation market has low concentration because the majority of providers are small companies and nonemployers that compete heavily on price, boosting negotiating power for buyers. Suppliers include Performance Contracting Group, KHS&S Contractors and BakerTriangle. Although the few larger companies have advantages with value-added service options, the high number of smaller service providers gives buyers a variety of options to choose from when sourcing acoustical and insulation services, says Cadby. Their strong financial health helps guarantee that services will be completed within predetermined financial and time budgets. Buyers are encouraged to bundle their project needs when considering providers that offer additional services and elicit multiple bids from vendors to increase options and encourage price competition.
At the same time, acoustical and insulation services are moderately specialized and require experienced operators to create customized solutions for buyers, hindering buyer power. Additionally, the availability of substitute services is low because projects require specific tools and materials to properly insulate a building, leaving few alternative choices.
In the three years to 2014, the recovering US economy has led to renewed demand for construction and related activities, which has fueled an upward trend in prices for acoustical and insulation services. Nonresidential growth lags behind residential construction, which has been on the rise during the past three years. This growth in demand has been unfavorable for buyers and is expected to continuing driving price increases in the three-year period through 2017. For more information, visit IBISWorld’s Acoustical & Insulation Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of acoustical and insulation services. Contractors provide building insulation, acoustical and ceiling work, and solar reflecting insulation services. This report excludes plastering and drywall 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.