Engineering Testing Services Procurement Category Market Research Report Now Available from IBISWorld
Los Angeles, CA (PRWEB) April 29, 2014 -- Engineering testing services have a buyer power score of 3.1 out of 5. This score indicates moderate negotiating power for the buyer, despite high specialization and switching costs, a lack of substitutes and growing demand negatively impacting buyer power. According to IBISWorld procurement analyst Erick Delgado, “buyers of these services benefit from a highly fragmented market, low supply chain and vendor financial risks and low price volatility.” In the three years to 2013, the recovering US economy has led to renewed demand for research and development among businesses, which, in turn, has fueled an upward trend in prices for engineering testing services. The need for engineering testing services is anticipated to grow during the three years to 2016 due to new government regulations requiring businesses to adhere to stricter testing, as well as continued growth in research and development expenditures. As a result, prices are expected to continue rising during this period, further benefiting the suppliers of engineering testing services.
Buyers primarily benefit from a highly fragmented market, which encourages price-based competition among vendors. However, due to the relatively low number of providers that specialize in engineering testing, vendors are able to charge a premium for their services, particularly during periods of high demand. Due to the continuing need to comply with government regulations, buyer power is generally restricted. As testing services become more popular, buyers will continue to lose negotiating power. “Moreover, the availability of substitute services is low, as buyers only have the choice to outsource or in-house their testing,” says Delgado.
Because engineering testing firms provide services across several industries, demand driver volatility has been low, which has shielded buyers from sudden price shifts. Low price volatility promotes a stable purchasing environment for buyers by allowing them to accurately budget and evaluate prices. Moreover, the diversification of services across several markets has led to low vendor financial risk. As such, buyers can expect to be more secure in negotiating long-term engineering testing contracts over the next three years. The four largest vendors in the market are SGS SA, Cardno Ltd., Terracon Consultants Inc., and Exova Inc.
For more information, visit IBISWorld’s Engineering Testing Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of engineering testing services, including analysis of physical, chemical and mechanical properties; rotating machinery and vibration; structural modeling, qualification testing and noise mitigation; nondestructive, geotechnical, thermal, calibration, electrical and electronic testing, among others. These services can be performed on-site or in a laboratory. This report excludes medical and veterinary testing.
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
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
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 http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld Inc., +1 (310) 866-5042, [email protected]
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