Prices have fallen in the past three years due to decreasing operating costs for steel framing contractors; however, growing demand has prevented prices from free-falling
Los Angeles, CA (PRWEB) March 27, 2015
IBISWorld estimates that steel framing services have a buyer power score of 3.7 out of 5, indicative of moderate buyer power in the market. According to IBISWorld analyst Deonta Smith, low market share concentration and intensifying competition among steel framing contractors have raised buyer power.
Despite a few notable players, such as Schuff International Inc. and Sarens Group, most service providers are small contractors operating on a local or regional basis. Large firms offer a myriad of related services and specializations, including light-frame and heavy-frame work, and can leverage their expertise in steel framing to craft more effective and creative solutions; however, smaller contractors typically specialize in providing standardized services. Nonetheless, more new players are likely to enter the market to take advantage of the rebounding construction sector, thus boosting price-based competition, which will underpin buyer power, continues Smith.
During the three years to 2014, buyers have benefited from falling steel framing service prices and low price volatility. Low price volatility means buyers can take time in making their purchasing decisions without fear of major price spikes in the near future. Unfortunately, steel framing service prices are expected to increase during the three years to 2017 because vendors' operating costs are anticipated to rise on the back of higher steel prices during the period.
Moreover, there is a wide range in prices for steel framing services, which makes it challenging for buyers to budget their costs. Nevertheless, the need for steel framing services is anticipated to remain stable during the next three years due to consistent demand from downstream residential, nonresidential and road and highway construction sectors. While buyers will benefit from continued low price volatility, the demand growth will favor contractors and prices are expected to rise slightly at an annualized rate of 0.9% in the three years through 2017. For more information, visit IBISWorld’s Steel Framing Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of steel framing services. Steel framing is an integral part of residential and nonresidential construction activities used to create a skeleton frame to support the roof, walls and floors of a building. Large, medium and small-sized steel framing service contractors install bars, rebar, setting rods, cages and mesh in structures to reinforce cooling towers, metal storage tanks and poured-in-place concrete. Wood framing services are excluded from this report.
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
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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.