Demand growth and higher input costs will lead to price increases for landfill services in the next three years
Los Angeles, CA (PRWEB) April 19, 2015
Landfill services have a buyer power score of 3.1 out of 5. This score reflects shared negotiation power among buyers and suppliers. “While buyers benefit from low switching costs and the slow price growth during the past three years, the lack of available substitutes limits buyer power,” according to IBISWorld business research analyst Ian Buchanan.
Due to stringent regulations pertaining to landfills, landfill services are necessary to many buyers' operations. Buyers can choose to perform these services in-house; however, in-house operations have significant startup costs. “Buyers that wish to bring these operations in-house must purchase a wide range of expensive machinery and hire or train permanent staff to operate said machinery,” says Buchanan. Furthermore, employees must receive all applicable certifications and be trained on all regulations to avoid facing legal issues. As such, in-house operations are impractical for most buyers. Knowing that buyers have a lack of alternative options to their services, suppliers gain stronger pricing leverage, offsetting the benefits of low switching costs slightly.
However, buyers benefit from low switching costs. Those that are dissatisfied with their current vendor will incur minimal costs when switching suppliers. The primary cost will be the loss of time during the evaluation and selection process of choosing a new supplier. The ability to easily switch vendors with minimal penalties pressures suppliers to renegotiate contracts and offer reduced pricing, strengthening buyer power.
Over the past three years, the price of landfill services has grown at a slow rate while having a low level of volatility. The low volatility has helped shield buyers from experiencing sudden and extreme price fluctuations during the period. Combined, the low volatility and slow annualized price growth have created a favorable purchasing environment for buyers. Without the risk of rapid price growth, buyers have been able to take their time making purchasing decisions. However, because prices are forecast to increase at a faster pace during the next three years, buyers are encouraged to enter into contracts now to secure lower rates. Major vendors include Geosyntec Consultants, Recology and Tetra Tech. For more information, visit IBISWorld’s Landfill Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of landfill services. Landfill services include a wide range of landfill maintenance, closure and post closure services (e.g. waste cover services, litter control, dust control, erosion control and hydro seeding). These services help to maintain landfills and reduce their impact on their environment and surrounding neighbors and businesses. This report excludes waste collection 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.