Maintenance Turnaround Services Procurement Category Market Research Report from IBISWorld has Been Updated

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The high level of specialization also contributes to high switching costs for the maintenance turnaround service market; much of the logistical and planning work that goes into conducting turnarounds will have to be redone when changing to a new supplier. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Maintenance Turnaround Services in its growing collection of procurement category market research reports.

IBISWorld procurement market research
Price growth is forecast to accelerate over the next three years due to stronger growth in industrial production activity

Maintenance turnaround services have a buyer power score of 3.0 out of 5, reflecting a slight advantage for buyers in the arrangement of supply agreements.

The primary factor boosting buyer power is low price volatility. While prices have increased over the past three years in line with increases in oil and gas production, electric power consumption, manufacturing and other industrial production activity, year-to-year price growth has been steady. No single buying segment has an overwhelming influence on the market in terms of demand, and the broad array of end markets for maintenance turnaround services supports stable price growth. “Even though oil and gas refineries are one of the largest markets for suppliers, their turnarounds are performed on a consistent schedule (usually every three to four years during January and February). These trends promote stability and minimize large demand and price fluctuations for turnaround services,” according to IBISWorld business research analyst Sean Windle.

The moderate level of concentration among suppliers both hinders and strengthens buyer power. The top four suppliers account for about 35.0% of revenue. “While buyers generally have less leverage when negotiating with these suppliers, the market's many small-scale vendors are usually more flexible and accommodating,” says Windle.

One of the factors that hurts buyer power is the high level of specialization involved in performing turnarounds, which take months and sometimes years to plan and execute. The high level of specialization also contributes to the market's high switching costs; much of the logistical and planning work that goes into conducting turnarounds will have to be redone when changing to a new supplier. Additionally, there are no viable substitutes for maintenance turnarounds for buyers to use as leverage during negotiations. Some repair and maintenance services can be conducted on-stream (i.e. without halting operations), but the thorough and comprehensive nature of turnaround services requires a partial or complete shutdown of operations. Major vendors include Baker Hughers Incorporated, Emerson Electric Co. and Halliburton Company. For more information, visit IBISWorld’s Maintenance Turnaround Services procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of maintenance turnaround services, which involve planned, temporary shutdowns of an industrial process unit. Vendors, which include industrial service companies and construction contractors, offer services that foster continued, uninterrupted production activity and reduce the risk of unplanned outages or catastrophic failures. Relevant services include testing, cleaning and drying storage tanks and vessels; draining and vacuuming vessels and tanks; and other related process improvement services. Buyers of these services include petrochemical processors, oil refiners, natural gas producers, power generators, steel producers and pulp and paper plant operators.
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
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
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 or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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