Facility maintenance and repair service prices are anticipated to increase at a slightly faster pace in the next three years due to a continued rise in input costs and demand
Los Angeles, California (PRWEB) January 03, 2015
Facility maintenance and repair services have a buyer power score of 3.1 out of 5, signifying that buyers in the market have a moderate level of power. Buyers benefit, first, from the variety of available providers in the market. According to IBISWorld market research analyst, Deonta Smith, "Buyers can procure services from larger-scale operators in their region and gain access to a wide array of maintenance and repair services or they can consider small-scale firms, which are likely to provide fewer services." Procuring services from a large-scale company is common, particularly for large industrial facilities, because buyers managing this facility type are likely to use most of the associated services that larger companies offer. Buyers managing smaller facilities, on the other hand, should be aware that, when purchasing services from a large-scale firm, they are likely to pay for associated services they may not utilize.
Regardless, all buyer types benefit from having access to a large number of providers of facility maintenance and repair services that can meet their needs. "If buyers are not satisfied with the large-scale service providers that serve their geographic location, small, local providers may be viable alternatives," says Smith. In addition, having access to a large number of vendors provides buyers with leverage at the negotiating table. Major vendors in the market include The ServiceMaster Company, Aramark Corporation and DTZ.
The low level of specialization associated with facility maintenance and repair services also aids buyer power. There have been few technical advances in the types of materials and equipment used to perform these services, and any operator can complete standardized services; this expands a buyer's options when selecting a vendor. Buyer power is, however, lower for firms requesting highly technical or extended services. Large-scale operators are more likely to be capable of performing any unique or specialized services the buyer may require.
Buyer power is also negatively impacted by the low availability of substitutes for facility maintenance and repair services, which decreases the buyer's ability to negotiate lower prices. Currently, the most viable market substitute is in-house services, which cost the buyer more to set up in the short run. For more information, visit IBISWorld’s Facility Maintenance & Repair Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of facility maintenance and repair services. The facility maintenance and repair service market is made up of a number of large and small-scale firms performing facility maintenance services for a wide range of buyers, including industrial and commercial businesses. Services provided include exterior services, such as landscaping and snow removal, and interior maintenance, such as furnace and heating, ventilation and air-conditioning (HVAC) system repairs. Other covered services include fire protection, air treatment, restroom power cleaning and clean room sterilization. Pest control services are excluded from this report.
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.