Prices are forecast to continue rising in the three years to 2017 as the construction sector grows further, spurring greater demand
Los Angeles, CA (PRWEB) March 05, 2015
Roofing, siding and sheet metal services have a buyer power score of 2.6 out of 5, indicating a moderate level of buyer negotiating power. During the three years to 2014, buyer purchasing power has declined mainly due to rising prices.
Prices for these services are heavily dependent on trends in the construction sector. “The values of both residential and nonresidential construction have increased rapidly during the three years to 2014 as the economy rebounded,” according to IBISWorld business research analyst Deonta Smith. In addition, spending on home improvements has grown at a moderate rate. These trends have driven demand growth for roofing, siding and sheet metal services, causing moderate price growth and negatively affecting buyers. In the three years to 2017, prices are forecast to continue growing as construction activity accelerates. However, prices are expected to grow at a slower pace due to an expected decline in suppliers' roofing material costs. Nevertheless, rising demand will further restrain buyers' ability to negotiate favorable prices.
Apart from increasing demand, other market characteristics negatively impact buyer power. The moderate costs buyers will incur when switching suppliers and a low availability of substitutes further hurt buyers, giving suppliers more leverage to establish prices.
“However, buyers benefit from these services' low level of specialization, making it easier to locate suppliers capable of satisfying their specific project requirements,” says Smith. Likewise, high market fragmentation and mounting competition have also benefited buyers by giving them a larger pool of suppliers to choose from. Suppliers are increasingly 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 to obtain a more favorable price. Major vendors include Centimark Corporation, Tecta America Corporation and Aspen Contracting. For more information, visit IBISWorld’s Roofing, Siding & Sheet Metal Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of roofing, siding and sheet metal services. Services included within the scope of this market are roofing, gutter, downspout and skylight installation, ceiling erection and repair, and siding installation and repair. Roofing, siding and sheet metal services are procured by a wide range of buyers, including residential contractors, nonresidential contractors and property managers. This report excludes building fireproofing and waterproofing 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
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.