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Due to rising demand from commercial buildings and industrial firms, the price of energy and utility consulting services is expected to rise over the three years to 2014. 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 Energy & Utility Consulting Services in its growing collection of procurement category market research reports.
Los Angeles, CA (PRWEB) June 30, 2014
The buyer power score for energy and utility consulting services is 3.4 out of 5. This score represents relatively high buyer power stemming from low market share concentration and low price volatility. However, buyer power is slightly subdued from the lack of available substitutes and the high level of specialization for this service. There is a large number of suppliers operating in the energy and utility consulting service market, with no major players that control a significant amount of market share. As such, competition among suppliers in this market is high. Due to this strong competition, suppliers are more willing to offer flexible pricing and various incentives to attract clients, says IBISWorld procurement analyst Ian Buchanan. For example, some suppliers will only require buyers to pay for their consulting services after the buyer receives cost savings. Consequently, the high level of competition presents buyers with greater buying power.
Despite the high level of competition, buyers lose some negotiation leverage from the lack of practical substitutes for energy and utility consulting services. Buyers can choose to opt out of contracting a consultant. However, without properly analyzing the best methods of reducing energy consumption specific to their facility, buyers may experience a weak return on investment. Knowing that buyers have few other options, suppliers gain pricing leverage, adds Buchanan. In addition, energy and utility consulting services require a high level of customization for each buyer. These services require specific knowledge and equipment to provide an accurate analysis. Because of this, the number of suppliers that can provide this service for each buyer with equal quality is limited, further dampening buyer power.
Although prices are rising, the price of energy and utility consulting services is expected to exhibit low volatility over the three years to 2014. This factor benefits buyers because it indicates minimal risk of extreme price fluctuations. As such, buyers have enjoyed the ability to create more accurate cost estimations and budgets during this period. For more information, visit IBISWorlds Energy & Utility Consulting Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of energy and utility consulting services. Suppliers of this service assess a buyers facilities to determine where energy is being wasted and what actions can be taken to reduce energy costs. This report does not include general consulting services for businesses operating in the energy and utility sectors.
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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