Further rises in construction activities will remain the primary source of price increases
Los Angeles, CA (PRWEB) March 05, 2015
Scaffolding services have a buyer power score of 2.8 out of 5, indicating a moderate level of negotiating power for buyers. During the three years to 2014, “buyer purchasing power has been hurt mainly by rising service prices and moderate market share concentration,” says IBISWorld research analyst Deonta Smith, adding that prices are heavily dependent on trends in the residential, commercial and industrial construction markets.
The values of residential and nonresidential construction have risen strongly during the three years to 2014 as a result of the rebounding economy. In addition, corporate profit has been growing at a moderate rate, leading to greater demand for scaffolding services. In turn, these trends have led to moderate service price growth and, thus, reduced buyer power. In the three years to 2017, scaffolding services prices are forecast to continue rising, especially as commercial construction activity accelerates. According to Smith, “Growth in nonresidential structure starts will bolster demand for contractors, which will further restrain buyers' ability to negotiate for lower prices.”
Conversely, buyers benefit from a high level of competition among the numerous small suppliers in the market, who are engaging in price-based competition to win new customers and maintain or gain market share. In recent years, this trend has allowed buyers to pit multiple suppliers against each other, limiting suppliers' ability to raise prices significantly. Current suppliers include Brand Energy & Infrastructure Services Inc., The Brock Group and Safway Services LLC. Buyers also benefit from low price volatility, which allows for more accurate budget forecasts. Nevertheless, buyers working on multiple construction projects are advised to seek long-term service agreements with key suppliers to lock in current rates before they increase further. For more information, visit IBISWorld’s Scaffolding Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of scaffolding services. Scaffolding is a temporary structure placed on the outside of a building, typically made of wooden planks and metal poles. Scaffolding is used during maintenance, cleaning, painting, exterior remodeling and for other construction-related activities that require workmen to work aboveground. Scaffolding contractors are subcontracted to erect and dismantle scaffolding equipment for construction projects. This report does not include scaffolding material rental without the accompanying erection and dismantling services.
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
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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.