Electrical Engineering Services Procurement Category Market Research Report from IBISWorld has Been Updated
Los Angeles, California (PRWEB) February 12, 2015 -- Electrical engineering services have a buyer power score of 3.3 out of 5. This score reflects moderately favorable conditions for the buyer, despite rising demand and prices, which have negatively impacted buyer power. According to IBISWorld market research analyst, Keiko Cadby, "Buyers of electrical engineering services benefit from the high fragmentation of the market, low vendor financial risk and low price volatility."
The high fragmentation of the market has encouraged price-based competition among suppliers, which has been beneficial for buyers' negotiating power. "Most providers are nonemployers or small engineering firms that compete primarily on price, and most large companies are flexible on price during negotiations despite their brand equity," says Cadby. Low market share concentration gives buyers many options to choose from when purchasing electrical engineering services. Major vendors in the market include CH2M Hill, Tetra Tech and Stantec.
Unfortunately, recent and forecast price trends are not in buyers' favor. In the three years to 2014, the recovery of the US economy has led to renewed demand for construction and related activities, which, in turn, has boosted demand and prices for electrical engineering services. The need for electrical engineering services is also anticipated to grow during the three years to 2017 due to strengthened demand from downstream industrial development and construction industries in addition to businesses' increased access to credit. As a result, service fees are expected to continue rising during this period.
Because electrical engineers provide services to several different industries, demand driver volatility has been low. Thus, overall demand for electrical engineering services has remained stable, and there has not been a significant risk of sudden price shifts. Low price volatility promotes a stable purchasing environment for buyers by making it easier for them to accurately budget and evaluate service fees over time. Moreover, the diversity of buyers that this market's suppliers rely upon for revenue has led to low vendor financial risk. As such, buyers can expect to be more secure in planning extensive building projects in the next three years. For more information, visit IBISWorld’s Electrical Engineering Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of electrical engineering services. Suppliers of electrical engineering services help buyers with high-, medium- and low-voltage power distribution, facility electrical system design, lighting design, building system controls, standby power applications, power system analysis and evaluations of electrical safety code compliance, among other services. This report excludes electronics engineering and computer engineering services.
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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