Prices have been increasing due to rising demand stemming from higher commercial construction and recreation expenditure
Los Angeles, CA (PRWEB) December 13, 2014
Auditorium and stadium seating has a buyer power score of 3.4 out of 5. According to IBISWorld analyst Michelle Hovanetz, this score indicates that buyers in this market experience a moderate level of negotiating power due to stable price trends, financially stable suppliers and a low level of product specialization. However, continuously rising prices and a lack of viable substitutes negatively impact buyer power.
Prices have been rising very slowly over the past three years, benefiting buyers. Additionally, low price volatility has been aiding buyers in this market, continues Hovanetz. There is a low risk of drastic price fluctuations, making it easier for buyers to plan and budget for purchases. Additionally, slow price growth lessens the urgency of making a purchase, allowing buyers to spend as much time as needed to negotiate the best deal. While prices are expected rise at a slightly higher rate in the three years to 2017, low volatility will continue to benefit buyers.
The financial stability of the average supplier indicates a lower risk of supplier bankruptcies, thereby reducing the risk associated with potential discontinuity of service. Auditorium and stadium seating suppliers include KI, American Seating and Hussey Seating Company. With the average supplier not at risk of bankruptcy, buyers choosing a vendor can be more confident that the company will not go out of business during the length of the contract, increasing buyer power. Low product specialization also helps to increase buyer power by boosting competition among suppliers and helping to ensure that buyers can switch from one supplier to another without significant differences in product quality.
Several factors hamper buyer power in this market, however. For example, growing demand and rising production costs for seating have caused suppliers to increase their prices. Prices are expected to continue growing at a faster rate during the three years to 2017. In addition, the absence of viable substitutes harms buyer power significantly. Buyers have no alternatives in this market, making them reliant of the prevailing market price of auditorium and stadium seating. For more information, visit IBISWorld’s auditorium & stadium seating procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of auditorium and stadium seating, which are used in arenas, stadiums, theaters and auditoriums. Stadium seats are typically purchased in rows and can be cushioned and upholstered or constructed primarily of plastic. This report includes both indoor and outdoor stadium seating and excludes office seating and all other furniture products.
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.