Prices are expected to further increase during the next three years as demand levels continue to increase, spurred by a rise in industrial production activities
Los Angeles, CA (PRWEB) March 23, 2015
Buyers of water damage restoration services have a buyer power score of 2.9 out of 5, which indicates shared negotiation power among buyers and suppliers. While a high number of water damage restoration service suppliers and low service price volatility benefit buyers, moderate switching costs negatively impact buyer power.
Within the water damage restoration service market, buyers benefit from low market concentration and intensifying competition among contractors. Despite a few notable large players, such as the ServiceMaster Company and Servpro, most service providers are midsize to small contractors operating on a local or regional basis. “Overall, the wide availability of suppliers in a market has forced operators to engage in significant competition, which has compelled them to temper price growth to attract buyers,” according to IBISWorld business research analyst Deonta Smith.
During the past three years, buyers have also benefited from low price volatility. Low price volatility indicates that buyers can take time in making their purchasing decisions without fear of major price spikes in the near future. “As a result, low volatility boosts buyer power for water damage restoration services,” says Smith. Unfortunately, water damage restoration service prices are expected to increase during the three years to 2018 as a result of rising demand.
There are some aspects of the market that are detrimental to buyer negotiation power. For example, switching costs can be significant, especially if buyers switch vendors during a project. For example, if a structure is not serviced completely within the first 48 to 72 hours, irreversible damage can occur, which may increase the overall price to perform services considerably. Water damage left unattended increases the risk of mold growth, which is a very expensive problem to remediate. Switching suppliers' midway will disrupt the restoration process and delay the ability of other subcontractors to perform related services. For more information, visit IBISWorld’s Water Damage Restoration Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of water damage restoration services. Water damage restoration is the process of extraction, treatment (e.g. drying, dehumidifying, deodorizing and disinfecting), cleaning and restoration of a residential or nonresidential structure following flooding or water damage. Large-, medium- and small-sized contractors perform restoration services on behalf of a wide range of buyers including commercial and industrial businesses, homeowners and government entities. Other related services include property inspections, evaluations, and other emergency 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.