Coring Services Procurement Category Market Research Report from IBISWorld Has Been Updated
Los Angeles, CA (PRWEB) February 18, 2015 -- Coring services have a buyer power score of 2.7 out of 5.0, which indicates low-to-moderate purchasing power for buyers. The market is fragmented with a large number of small and medium-size firms. As a result, price-based competition has intensified among smaller suppliers, thereby aiding buyer negotiation power, says IBISWorld analyst Agiimaa Kruchkin. The financial stability of vendors also minimizes risk for buyers. The price of coring services, however, has grown strongly in the three years to 2014, which has restricted buyer power.
The strong growth in the price of coring services was facilitated by the limited availability of substitute services, which has made demand largely inelastic. However, the intensifying competition among small and medium-size suppliers typically prevents these firms from raising prices rapidly, which provides some relief to buyers, continues Kruchkin. Suppliers' input costs have risen slowly during the period, with the exception of average wages, and have had a little impact on pricing. As such, external demand drivers largely have driven price growth for coring services during the three years to 2014. For instance, industrial production has picked up significantly following the recession and has driven demand for mining, oil drilling and gas extraction activities. Additionally, the value of construction rebounded strongly after the recession, which has raised the need for commodities and, thus, coring projects.
During the three years to 2014, the hourly fees for coring services recovered particularly quickly among the largest suppliers (e.g. Schlumberger Ltd., Halliburton Company and National Oilwell Varco Inc.) because the rebounding economy channeled demand to suppliers with the greatest expertise in the field. Consequently, buyer power has declined slowly during the three-year period.
Demand for coring services is anticipated to continue growing in the next three years and favor suppliers while hurting buyers. Nonetheless, prices are forecast to rise at a slower annualized rate in the three years through 2017; therefore, buyer power is anticipated to remain at about the same level. For more information, visit IBISWorld’s Coring Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of coring services, which involve obtaining recoveries of core samples for subsequent data evaluation. Suppliers provide services such as conventional core drilling, core isolation, horizontal coring, core analysis, anti-jamming system services, motor coring, oriented coring and core preservation, among others. Most of these services must be performed on-site. This report does not cover procurement of coring equipment.
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
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
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 http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld Inc., +1 (310) 866-5042, [email protected]
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