Pipeline Integrity Management Services Procurement Category Market Research Report from IBISWorld has Been Updated
Los Angeles, CA (PRWEB) April 23, 2015 -- Pipeline integrity management services have a buyer power score of 3.1 out of 5. This score indicates a purchasing leverage that is moderately in favor of buyers. “Buyers benefit from low price volatility but a low level of substitutes and high level of specialization limits buyer power,” according to IBISWorld business research analyst Ian Buchanan.
In accordance with the Pipeline Safety Improvement Act, enacted in 2002, all pipelines must complete integrity assessments every seven years. Aside from completing this assessment in-house, which can be very costly, there are no practical substitutes that allow buyers to fully comply with regulations. Knowing that buyers have limited options, suppliers gain pricing leverage. In addition, pipeline integrity management services are highly specialized as a result of the varying characteristics of each pipeline. Suppliers must develop custom plans and use specific equipment for each buyer. This factor limits the number of available suppliers that can provide effective solutions for a specific buyer, leading to weakened competition among qualifying suppliers. Consequently, negotiation power is decreased further.
“Due to growing demand for commodities transported via pipelines and rising levels of oil and gas production, prices for pipeline integrity management services have increased during the three years to 2014,” says Buchanan. Although prices have grown during this period, price volatility has been low. Buyers benefit from low price volatility because it provides the assurance that prices will not fluctuate significantly, which allows buyers to perform more accurate cost estimates. During the three years to 2017, buyers are projected to experience a more favorable purchasing environment as price growth eases back to a slower rate due to suppressed oil and gas production, while maintaining a low level of volatility. Still, buyers can enter into long-term contracts with suppliers to secure discounted rates and mitigate future price increases. Major vendors include Weatherford International, Halliburton Company, GE Energy and SGS International. For more information, visit IBISWorld’s Pipeline Integrity Management Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of pipeline integrity management services. Providers of these services repair and prevent corrosion, inspect for cracks or leaks and perform maintenance as needed to maintain the integrity of pipelines designed to transport commodities (i.e. gas, oil or coal) from one location to another. Services can be purchased on an ad hoc basis, or with a contract to have the supplier provide regularly scheduled assessments. This report excludes pipeline construction services and pipeline inspection 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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