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Urban Design Services Procurement Category Market Research Report from IBISWorld has Been Updated
  • USA - English


News provided by

IBISWorld Inc.

Dec 07, 2014, 04:00 ET

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Demand for services has risen aggressively, primarily due to growing investment from the public sector

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Los Angeles, CA (PRWEB) December 07, 2014 -- Urban design services have a buyer power score of 3.9 out of 5, reflecting strong negotiation conditions for buyers. Low market concentration and price volatility have a positive impact on buyer power. Alternatively, rapidly rising demand offsets buyer leverage.
The urban design service market requires a low upfront capital investment as top-tier suppliers gain little from economies of scale. “These factors keep barriers to entry low and prevent top-tier suppliers from gaining a large competitive advantage,” according to IBISWorld business research analyst, Daniel Krohn. In turn, new suppliers are able to easily enter and compete within the market, creating low market concentration. Low market concentration stimulates competition and, as such, helps buyer power.
Additionally, suppliers have been able to keep consistent pricing strategies during the past three years. Urban design relies on primarily labor inputs, which grow and decline at predictable rates. As such, suppliers rarely encounter disruptions and price hikes from their upstream supply chain. Furthermore, key buyers within the market come primarily from the public sector and inherently carry low risk. Although investments from these key buyers may fluctuate, urban design suppliers are assured that buyers from the public sector will not exit the market or default on their payments. In turn, low supply chain risk enables suppliers to effectively manage their assets, which prevents them from having to alter their prices abruptly. Buyers benefit from low price volatility because it makes it easy for them to budget their urban design expenses.
Nonetheless, economic growth during the past three years boosted the demand for urban design services considerably. Urban development projects that were delayed during the recession are now aggressively being initiated. Further, business and urban population growth has spurred additional demand from the private sector. “Together these factors have driven demand for urban design services upward, alleviating the competitive pressures that low market concentration creates,” says Krohn. In turn, demand growth has discouraged suppliers from lowering their prices and has, thus, hampered buyer power. Major vendors include Jacobs Engineering Group Inc., AECOM and Gensler. For more information, visit IBISWorld’s Urban 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 urban design services. Urban design service suppliers act as an intermediary between architects, landscape designers, city planners, civil engineers and related professions and assist in integrating individual elements into a cohesive urban design. Their primarily roles include strategic planning, conducting feasibility studies, recruiting consultants and marketing the finished design to the general public. This report excludes individual consultants procured to produce the individual elements of the design, including architects, city planners, civil engineers and landscape designers.

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
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
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 http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith, IBISWorld Inc., +1 (310) 866-5042, [email protected]

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