Armored Transport Services Procurement Category Market Research Report from IBISWorld Has Been Updated

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Falling gasoline prices have driven down operating costs and allowed suppliers to leverage price cuts to grow their market share, but high market concentration has mitigated competitive pressures and has curbed recent price deflation; future market consolidation will alleviate competitive pressures and allow suppliers more pricing power, and rising gasoline prices will apply upward pressure to prices. 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 Armored Transport Services in its growing collection of procurement category market research reports.

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Falling gasoline prices have driven down operating costs, thereby allowing suppliers to leverage price cuts to grow their market share

Armored transport services have a buyer power score of 3.6 out of 5, which indicates moderately positive negotiating conditions for buyers. During the past three years, the rising adoption of debit cards and online payments has offset growth in the amount of physical currency circulating in the economy. According to IBISWorld analyst Daniel Krohn, this trend has kept the demand for armored transport services stagnant and on par with the level of supply, which has promoted competition among suppliers and benefited buyers. Meanwhile, gasoline prices have fallen in response to rising US stockpiles of oil and, in turn, have driven down vendors' operating costs. Because services are largely standardized, suppliers such as United Technologies Corporation, G4S PLC and Securitas AB have passed on their savings to buyers in the form of lower prices to better compete within the market, which has positively affected buyer power.

Buyers have also benefited from low switching costs. Lead times for armored transport services are short and require few technical skills, only moderately specialized equipment and minimal customization. As such, all suppliers in the buyer's region are viable options, thereby broadening the buyer's pool of potential vendors, continues Krohn. Meanwhile, buyers are not required to make high up-front investments or purchase complementary equipment, allowing them to easily exchange their current supplier for one offering a better deal. Together, these factors impose substantial competitive pressure on suppliers, thereby boosting buyer leverage.

Nonetheless, a variety of factors subdue buyer power. High concentration within the market has curbed competition and, as such, has slowed recent price deflation. In the next three years, market concentration and input prices are projected to grow, encouraging future price growth for armored transport services. Consequently, buyers can expect to lose negotiation power during the three years to 2018 and are encouraged to leverage long-term contracts to lock in prices now. However, because average vendor financial risk is expected to be moderately high, buyers should be careful to assess their vendor's financial stability prior to entering into a long-term agreement. For more information, visit IBISWorld’s Armored Transport Services procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of armored transport services. Armored transport services involve the secure transportation of money and valuable items to customer-determined destinations. These services typically provide buyers with an armored vehicle manned by trained security personnel. This report excludes security services not involving security system design, armored car retail and the transport of money.

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
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
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 or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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