Business intelligence firm IBISWorld has produced a report on the procurement of cement, suggesting that price growth will slow down in the US as the construction market normalises and imports increase. In a press release announcing the report, the firm notes the minimal buyer negotiating power when it comes to cement prices, due to the fact that there are few players in the market and even fewer substitutes for the product.
“A slew of merger and acquisition activity during the past three years has further increased market share concentration, limiting the number of suppliers buyers have to choose from,” says IBISWorld research analyst Kiera Outlaw. However, she goes on to say that “the commoditised nature of cement has facilitated intense price-based competition among suppliers,” which “allows buyers to base their purchasing decisions primarily on price, considering other supplier characteristics to a lesser extent. This nature has also led to low product specialisation, so buyers are not limited to a select pool of suppliers for specific types of cement.”
IBISWorld suggests that price growth and volatility are expected to ease during the three years to 2017, though prices are still expected to continue rising, just at a slower rate. For more information, visit IBISWorld’s Cement procurement category market research report page.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/the-americas/06012015/new-report-suggests-us-cement-price-growth-will-slow-85/