Price growth is forecast to continue at a similar rate during the three years to 2018 as tipping fees and demand rise
Los Angeles, California (PRWEB) April 20, 2015
The market for roll-off dumpster rentals has a buyer power score of 2.9 out of 5, indicating that buyers have a slight advantage over vendors during the negotiating process. According to IBISWorld market research analyst, Deonta Smith, "Moderate market share concentration, low switching costs and a low degree of specialization have positively influenced buyer power." However, rising prices and tipping fees mitigate these benefits.
Although the majority of the 500-plus vendors offering dumpster rental are small and medium-size companies servicing local and regional markets, national vendors have expanded their reach via acquisition activities to gain significant market share. "Due to high transportation costs, buyers typically procure roll-off dumpsters from suppliers in proximity to their jobsite," says Smith. Although this can limit the selection for buyers in areas with fewer suppliers, buyers in heavily populated areas have several supplier options from which to choose, giving them opportunities to negotiate rental rates. Having a wide selecting of suppliers to choose from increases buyer power. Buyers can leverage local vendors against national operators to seek lower rates. Major vendors in the market include Waste Management Inc., Rumpke Consolidated Companies Inc. and Republic Services Inc.
Buyers also benefit from a low level of product specialization and low switching costs for dumpster rental. Roll-off dumpsters are fairly standardized across the market and are only differentiated based on size. Additionally, because most vendors carry the same dumpster sizes, switching costs are low. With numerous vendors to choose from, buyers can target suppliers based upon price and the reliability of the vendor's service (e.g. on-time deliveries).
Although buyers enjoy a slight advantage when negotiating supply agreements, price trends during the past three years have hurt buyer power. Heightened demand from downstream markets, particularly property owners, has resulted in higher rental rates. Also, increased regulations on the municipal level and the overall contraction of landfills over time have caused tipping fees (fees paid by anyone disposing of waste at a landfill) to rise; this has forced buyers to accept price increases. For more information, visit IBISWorld’s Dumpster Rental procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of dumpster rental, primarily roll-off dumpsters. For the purpose of this report, “buyer” will refer to any party looking to rent a dumpster. Roll-off dumpsters are available in several standard dimensions and primarily rented to homeowners, building renovators, demolition firms and construction companies. Suppliers are national and regionally located waste collection service providers and dumpster rental firms. Although some vendors provide waste management services, this report does not focus on procuring those services. Furthermore, this report focuses on one-time or project specific disposal and excludes permanent service that is characterized as ongoing.
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.