In the three years to 2017, employment law service rates are projected to rise as the rebounding economy stimulates further growth in the number of businesses, further driving demand for this service.
(PRWEB) March 26, 2015
Employment law services have a buyer power score of 3.3 out of 5, which is indicative of moderate buyer power in the market. The low level of viable substitutes and significant service specialization undermine buyer power. “At the same time, the highly fragmented nature of the market, low price volatility and negligible switching costs boost buyer negotiation power, offsetting the impact from negative factors,” says IBISWorld procurement analyst Agiimaa Kruchkin.
Suppliers in the employment law services market are more willing to negotiate lower service prices due to heavy price-based competition, especially among small and medium-size law firms. Furthermore, the cost of switching to a new supplier is low, which encourages vendors to foster their relationships with buyers for repeat business. “Low switching costs also benefit buyers in negotiations when renewing their contract because they can use this factor as leverage with their current supplier,” adds Kruchkin. “In addition, the low price volatility has also contributed to moderate buyer power.” Low price volatility indicates that buyers are not at high risk for price spikes due to steady input costs, in turn maintaining buyer negotiation power.
Macroeconomic conditions have largely favored suppliers during the three years to 2014. Namely, the number of businesses has trended upward, albeit slowly, boosting demand for employment law services. Similarly, corporate profit has expanded robustly, driving demand, and therefore prices, of employment law solutions. As a result, prices have been trending upward at a moderate rate, thereby restricting buyer power.
As the economy continues to recover in the three years to 2017, businesses will expand their operations and hire more employees. This trend will further boost demand for employment law services, thereby fueling service rates and restricting buyer power in the next three years. Buyers are advised to research employment law firms ahead of time to create a short list of firms from which to potentially procure these services when the need arises. For more information, visit IBISWorld’s Employment Law Services procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of employment law services. Employment law mainly focuses on mediating the relationship between employees and employers, trade unions and the government. Employment lawyers ensure that businesses are in compliance with laws by reviewing employee manuals and contracts, advising businesses on employment issues and representing businesses in lawsuits. Pertinent issues concern minimum wage laws, overtime pay, workplace regulations, disability leave, maternity leave, workplace hazards, discrimination and harassment. This report does not cover employee benefits law, labor disputes or malpractice and negligence law 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.