Crating & Containerization Services Procurement Category Market Research Report from IBISWorld Has Been Updated

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Minor growth in suppliers’ input costs has been passed on to buyers in the form of slightly higher prices over the past three years, but growth in market participation has mitigated price increases; prices will continue to rise at a subdued pace during the next three years on the back of mild input cost growth and demand increases, but growth will be mitigated by price-based competition. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Crating & Containerization Services in its growing collection of procurement category market research reports.

IBISWorld procurement market research
Minor growth in suppliers’ input costs has been passed on to buyers in the form of slightly higher prices over the past three years; however, growth in market participation has mitigated price increases

The buyer power score for crating and containerization services is 4.0 out of 5, indicating favorable conditions for buyers. According to IBISWorld analyst Hayden Shipp, relatively high buyer power stems in part from the subdued pace of recent and forecast price growth. While demand for services has risen over the past three years and will continue growing with the uptick in manufacturing and trade, low market share concentration and low barriers to entry have diminished price growth by ensuring a healthy degree of price-based competition in the market. Suppliers' relatively low input cost growth, which will persist during the next three years, also keeps this market's price growth minimal. Buyers also benefit from the low volatility of this market's prices because they generally prefer to contract containerization services on a per-job basis rather than through long-term agreements, which lock down prices over an extended period.

The high level of fragmentation in the market further contributes to buyers' negotiation power because it minimizes switching costs, which are already low because most containerization is done on a per-job basis without long-term contracts, continues Shipp. Additionally, suppliers are generally financially stable, and their primary input, low-skilled labor, is widely available. As such, the risk of service disruption is minimal. Buyer power is also bolstered by the fact that large shippers can often afford to develop in-house containerization; once price rises above a certain point, these shippers no longer outsource crating and containerization services, and they reduce market demand in doing so.

However, containerization services are somewhat differentiated, which keeps buyer power in check by moderating the impact of price-based competition. Containerization firms may specialize in the demanding export business, where shipped goods are often subjected to harsh climatic and mechanical strains aboard ships. Some firms that specialize in containerization for niche markets, like telecommunications, also elevate their prices. Firms that can provide add-ons, like freight forwarding and inventory control, can also command higher prices, although they may still reduce a buyer's overall costs for shipping and storage. For more information, visit IBISWorld’s Crating & Containerization Services procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of crating and containerization services. These services include packaging stocked or custom foam, boxes, cases or crates, which suppliers sell along with the labor required to encase goods in these protective containers. Additionally, this report covers the procurement of packing and unloading services for trailers and intermodal containers that buyers purchase or lease from third parties. In packing these large receptacles, suppliers apply the same techniques regarding the padding, wrapping, bracing and weight balancing of goods as those used in crating. Crating and containerization services can be performed at either the buyer’s facility or the supplier’s facility. This report does not cover the procurement of shipping services.

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.

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Gavin Smith
IBISWorld Inc.
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