Due to rising demand from contractors, the price of thermal building insulation will increase in the next three years
Los Angeles, CA (PRWEB) January 27, 2015
The thermal building insulation market has a buyer power score of 3.2 out of 5. According to IBISWorld market research analyst, Deonta Smith, "Buyers derive power primarily from a high level of product availability and low switching costs." Meanwhile, a low availability of substitute goods negatively impacts buyer power.
A wide range of vendors supplies thermal building insulation, including vertically integrated building material manufacturers, such as E.I. du Pont de Nemours and Company, insulation manufacturers, such as Johns Manville or Knauf Insulation, or building supply wholesalers. "Regardless of what supplier type, buyers generally purchase thermal building insulation products from suppliers located within their operating region to save on costs," says Smith. Imported materials are also a viable option, although buyers should consider the additional costs associated with foreign-made products, such as shipping and tariffs. This extensive supply expands the range of thermal building insulation suppliers that buyers can choose from, thus improving buyer power. Additionally, it is relatively easy to switch between firms without incurring a loss.
Still, buyers do face some obstacles in procuring thermal building insulation products. For example, the lack of substitutes limits the buyer's scope of purchasing options. As such, if a buyer is not satisfied with its current insulation products, purchasing modified thermal building insulation materials or a different brand are the buyer's only alternatives. In general, because thermal building insulation products are an important part of building construction activities and the structure's ability to maintain favorable temperatures, there are no practical alternatives from which to choose. In effect, the absence of substitutes indicates that demand for these products is relatively inelastic, often forcing buyers to accept the prevailing market price. For more information, visit IBISWorld’s Thermal Building Insulation procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of thermal building insulation, which is used to seal and insulate a building to maintain the desired climate and improve energy efficiency. Thermal building insulation materials comes in various forms, such as fiberglass, wool, plastic fiber, polyurethane or phenolic foams, insulation panels and concrete block insulation. A wide range of buyers, including interior design firms and residential and nonresidential contractors, commonly purchase thermal building insulation products. Suppliers include interior design product manufacturers, wholesalers and retailers. This report excludes specialty insulation products such as acoustical insulation and insulation sealing layers.
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.