Growth in the construction sector will be the main source of price increases during the next three years
Los Angeles, CA (PRWEB) April 29, 2015
New data for the market for wood floor installation services reflects a buyer power score of 2.7 out of 5, indicating moderate negotiation power. Low market concentration and intensifying competition among wood floor installation contractors raise buyer power. Despite a few notable players, such as Empire Today LLC and Lumber Liquidators Inc., most service providers are small contractors operating on a local or regional basis. Large national firms typically wholesale or retail wood flooring products and can offer material discounts to buyers, which use them for installation services. However, smaller contractors typically specialize in providing only installation services. Due to the market's low barriers to entry, new players have entered the market to take advantage of the rebounding construction sector. “Thus, price competition among contractors has been on the rise and has aided buyer power,” according to IBISWorld business research analyst Deonta Smith.
During the past three years, buyers have also benefited from 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,” says Smith.
Some aspects of the market, however, are detrimental to buyer negotiation power. Vendors' operating costs are anticipated to rise on the back of higher lumber prices, which will cause prices for wood floor installation services to increase during the next three years. In addition, switching costs can be significant, especially if buyers switch vendors during a project. General contractors face significant switching costs because they are typically in charge of a larger construction project and are under fixed schedules. Moreover, switching suppliers midway will disrupt the construction process and delay the ability of other subcontractors to finish their work on time. For more information, visit IBISWorld’s Wood Floor Installation procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of wood floor installation and refinishing services. Small independent contractors make up the bulk of suppliers that provide wood floor installation and refinishing services, but there are a number of large commercial contractors operating in the market. This report excludes the installation of other types of flooring material, such as laminate or vinyl.
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.