Urban planning service prices have risen slightly from 2011 to 2014 in response to demand growth resulting from increases in the value of construction and urban population
Los Angeles, CA (PRWEB) December 12, 2014
A moderate availability of substitutes, moderate specialization, low market concentration and a favorable pricing environment typify the market for urban planning services. These factors support a power score of 3.9 out of 5 for urban planning buyers. “This level of buyer power indicates buyers have a higher amount of leverage during negotiations than suppliers,” according to IBISWorld business research analyst, Kayley Freshman-Caffrey.
First, scarcity in the number of alternatives hurts buyers. Urban design and engineering firms, architects, civil engineers and landscape designers can provide viable substitutes for urban planning services, but their suitability to the buyer's needs will depend on the exact services requested by the buyer; in many cases, these other entities cannot provide comparable services. Furthermore, specialization is moderate, which limits the number of urban planners capable of meeting the buyer's requirements. Together, the availability of substitutes and specialization levels restrict the range of options for buyers, which limits their ability to attain lower prices by leveraging the existence of alternate services and suppliers.
Alternatively, low market concentration mitigates these negative effects by fostering competition among suppliers. “This competition pressures suppliers to limit their yearly price changes for worry their customers will defect to other firms,” says Freshman-Caffrey. Along with encouraging lower prices, the dampening effect of competition on annual price fluctuations helps buyers by keeping price volatility down. Low price volatility allows buyers to more accurately budget for their urban planning expenses.
Low price volatility is one of many factors contributing to the favorable pricing environment for buyers. Recent and projected price trends also boost buyer power. Prices are growing, but yearly price increases are minute. Due to stable pricing, buyers can procure their urban planning services when needed rather than timing their contract according to expected price fluctuations. Overall, the positive impacts of the favorable pricing environment and low market concentration combat the negative effects of the moderate availability of substitutes and moderate?specialization to give buyers moderate power. There are no major vendors in this market. For more information, visit IBISWorld’s Urban Planning 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 urban planning services. Urban planning firms specialize in generating a master plan that details the proposed uses for a city, town or other urban development. These suppliers generally work together with local governments to tailor a plan to the client’s long-term goals and restrictions. These firms can also work through an intermediary, such as an urban design and engineering firm, or they can conduct both types of services in-house. This report excludes many related industries such as architecture, civil engineers and landscape designers.
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.