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Utility Locating Services Procurement Category Market Research Report from IBISWorld has Been Updated
  • USA - English


News provided by

IBISWorld Inc.

Mar 18, 2015, 02:50 ET

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In the three years to 2015, the price of utility locating services has trended upward on the back of rising demand; however, growth has been mitigated due to the high level of competition among suppliers

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Los Angeles, CA (PRWEB) March 17, 2015 -- Utility locating services have a buyer power score of 3.2 out of 5. This score signifies that buyers in the market have a moderate level of power during the negotiation process. “In the three years to 2015, the recovering US economy has spurred a rise in demand for construction activity; because contractors are required by law to locate utilities before commencing excavation or digging projects, this trend has led to a rise in demand and prices for utility locating services,” according to IBISWorld business research analyst Deonta Smith. Demand for these services is forecast to increase steadily over the next three years due to continued demand from construction firms and a rise in demand among state and local governments looking to maintain their utility infrastructures. Increased demand will continue to be detrimental to buyer power in the coming years as prices grow further through 2018.

Additionally, utility locating services are moderately specialized services that require operators to thoroughly inspect the project site, both underground and underwater, for a multitude of utilities. Some of this market’s largest suppliers include Puls Inc., Elm Locating and Utility Services, US Infrastructure Corporation and Ground Penetrating Radar Systems Inc. Service providers require specialized instruments and equipment to perform these inspections; consequently, suppliers must account for the cost of the equipment in their prices. While buyers can try to perform utility locating services themselves, this specialized equipment is expensive.

Fortunately for buyers, price volatility for utility locating services has been low over the past three years, indicating that buyers are not exposed to significant risk of sudden price shifts. “Vendors' supply chain poses moderate risk to buyers, especially in regard to fluctuations in the prices of various overhead items, such as navigation equipment used to perform the service and fuel used to travel to the project site,” Smith says. However, buyers will not face a high degree of risk from the supply chain as long as downstream demand remains stable. For more information, visit IBISWorld’s Utility Locating Services procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of utility locating services. Suppliers in this market assess a jobsite before an excavation project begins to determine where utility lines are located. Services include assessment of utility lines for natural gas, telecommunications, electricity, fiber optics, water, sewers, traffic lights and other utility equipment, both underground and underwater. Vendors specialize in safety management and typically work directly with a construction crew in the early stages of an excavation project. Utility locating services are also used for utility infrastructure maintenance activities and oil and gas production activities. This report does not include general consulting services for energy and utility companies.

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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