Prices are expected to continue increasing in line with rising demand for services
Los Angeles, CA (PRWEB) February 10, 2015
Tank and line testing services have a buyer power score of 2.9 out of 5. Buyer power has been strengthened by the market's high level of competition and low level of service specialization, according to IBISWorld research analyst Ian Buchanan. “However, buyer power has been moderated by the lack of available substitutes.”
The market for tank and line testing services contains a large number of small vendors, such as ATS Environmental, Tanknology, Crompco and Seneca Companies, and no major player controls a significant level of market share. “The market has been saturated by a combination of heightened regulation and expansion among suppliers' downstream markets,” says Buchanan, “which has fueled demand and motivated new vendors to enter the market.” Competition in the market is high because suppliers must strive to build their level of market share. Suppliers of tank and line testing services are, consequently, pressured to offer reduced pricing to attract and retain clients, offering buyers greater negotiation power.
Additionally, tank and line testing services are generally homogenous across suppliers, lowering switching costs and strengthening buyer power. Many suppliers receive the same level of certification, and services are conducted in a similar manner for different storage tanks. But due to regulations enforced by both federal and local entities, many buyers are required to receive third-party tank and line testing services on a regular basis depending on the contents of their storage tanks. Unfortunately for buyers, this eliminates the option of seeking alternatives to this market's services or conducting in-house operations. Armed with the knowledge that buyers cannot seek alternative options, suppliers gain pricing leverage and buyer power is reduced. For more information, visit IBISWorld’s Tank & Line Testing Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of tank and line testing services. Tank and line service suppliers test the systemic integrity of underground storage tanks (USTs), aboveground storage tanks (ASTs) and the connecting pipelines in order to measure the possibility of leaks and other potential issues. Services are also provided to determine whether or not the tank and line operator is meeting all local and federal regulations. This report does not include exploration services, well surveying, tank and line repair services, foundation building or site inspections.
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.