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The price of services has increased during the past three years due to rising operating costs for suppliers and an uptick in demand brought on by higher corporate profit; service prices are anticipated to increase in the next three years due to rising demand. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Facility Maintenance & Repair Services in its growing collection of procurement category market research reports.
Los Angeles, CA (PRWEB) July 11, 2014
Facility maintenance and repair services have a buyer power score of 2.9 out of 5. This score signifies that buyers in the market have a moderate level of power. The large number of players in the market and low level of product specialization positively influence buyer power; however, it is negatively affected by the lack of substitutes. Major players in the market include ABM Industries Inc., Aramark Corporation and Ascential. Buyers can procure services from a larger operator located within their region and gain access to a wider array of services, or they can consider smaller firms, which are likely to provide fewer services, says IBISWorld analyst Deonta Smith. Regardless of a buyer's location, they have access to a large number of service providers that can suit their needs. As such, if a buyer is not satisfied with the large service provider that serves their geographic location, a small local provider may be a viable alternative. Having access to a large number of vendors provide buyers leverage at the negotiating table.
The low level of specialization associated with facility maintenance and repair services further aids buyer power. There have been few technical advances in the types of materials and equipment used to perform these services. Therefore, any operator can complete most projects, thus expanding a buyer's options when selecting a vendor. However, continues Smith, buyer power is lowered for firms requesting highly technical services; larger operators are more likely to have the capability to perform any unique or specialized services the buyer may require.
In contrast, the lack of substitutes for facility maintenance and repair services narrows the buyer's options. The lack of substitute products forces buyers to accept the prevailing market price. Currently, the most viable substitutes are in-house services, which will cost the buyer more to set up in the short run. For more information, visit IBISWorlds Facility Maintenance & Repair Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of facility maintenance and repair services. Services provided include exterior services, such as landscaping and snow removal, as well as interior maintenance, such as furnace and HVAC system repairs. Pest control services are excluded from this report.
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, IBISWorlds 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.
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