Due to the long and useful life of office furniture, demand tends to ebb and flow based on the economic climate. As economic activity has picked up, so has activity in key buying segments, including the healthcare sector and the education sector.
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Wireline Telephone Services
Many customers have been dropping landline telephone services in favor of alternate communication methods. This shift in telecommunication preference is due to the improvement of mobile telephone technologies and other substitutes, which has made wireline telephone services significantly less desirable.
Cellular Telephone Services
Price declines are largely the result of a saturated market that has led to intense price-based competition among service providers. A key strategy implemented by carriers to retain and win business from other carriers in the past three years has been to cut their service prices slowly, with little volatility.
Consumer spending has increased as a result of rising consumer confidence and a dip in the unemployment rate, which have fueled growth in demand for corrugated boxes used to transport various consumer goods.
Digital Printing Services
While the number of businesses has risen, increasing the pool of potential buyers of printing services, businesses have begun shifting operations away from print documents and toward digital documents, as indicated by the decrease in print advertising expenditure.
Industrial Printing Services
Publishers have been increasingly distributing books through digital medium such as tablets, while marketing departments have cut back on print advertising expenditure in favor of online advertisements.
Paperboard & Packaging Papers
Demand for paperboard from industrial sectors has grown as improvements in the economy have spurred construction and manufacturing activity.
Heightened industrial production and growth in the number of businesses have generated strong demand because the inflow of goods into the economy has necessitated the use of material handling goods like wood pallets.
General Warehousing & Storage
As demand for warehousing services has risen, demand for additional staff has grown as well, thereby inflating average wages. Growth in labor costs has contributed to expanding operating costs for suppliers.
Letter & Parcel Delivery Services
Increases in total trade value and the number of businesses have led to a rise in domestic and international shipping volumes, particularly by businesses.
Local Freight Trucking Services
Trends in consumer spending determine demand for market services from wholesalers and retailers, which together account for about one-third of carriers’ sales. Moderate growth in consumer spending has contributed to demand growth for local trucking services.
National Trucking Services
Rising demand for cargo transportation services, including truck transportation, has been the primary driver of increasing market prices. Total trade value has grown significantly, indicating that more goods need to be transported to and from major ports and hubs and boosting demand for carriers’ services.
Third-Party Logistics Services
Growth in the total trade value and industrial production index indicates strong economic growth, which has translated into improving sales in a wide range of markets. In turn, growing businesses have turned to 3PL suppliers to help them scale their operations quickly, which has led to strong sales in the 3PL market.
Corporate Travel Services
The number of both domestic and international trips by US residents have climbed during the past three years, boosting demand for travel services, including that from business buyers.
Domestic Air Travel
Low-cost carriers, which tend to strip flights of amenities in order to offer the lowest possible prices, have been encroaching on the market share of the major legacy airlines, forcing them to price match on many air travel routes.