- Tags : MRO | Electrical Contracting Services | Price trend | Price forecast | Procurement research | Category market forecast
Recent Price Trend - Electrical Contracting Services
The price of electrical contracting services has been increasing at an estimated annualized rate of 2.9% during the three years to 2017. In particular, a boom in residential construction has strengthened demand for electrical work and caused prices to rise. Additionally, the price of copper has been highly volatile, which has forced suppliers to keep prices elevated to protect their profit margins. Overall, however, the pace of price growth has been mild, which has slightly improved buyer power.
On the demand side, the value of construction has displayed strong growth, bolstering demand for electrical contracting services for residential, institutional, commercial and industrial buildings. As a result, suppliers have had greater leverage to raise service prices. In addition, an increase in local and state government investment has resulted in higher government spending on infrastructure projects requiring electrical services, which has boosted demand for market services. This trend has allowed suppliers to raise service prices without fearing a loss of business interest among buyers.
Additionally, the price of copper, which is a key input for these services, has been highly volatile during the past three years. This instability is due to weak demand, particularly in China, which has resulted in an imbalance in supply and demand. As a result of this supply chain instability, suppliers have opted to keep their prices elevated to avoid the risk of a price shock that could affect their profit margins. While the world price of copper has fallen overall, buyers have not seen falling service prices.
Price driver volatility has been high during the past three years, but service prices have remained stable, allowing buyers to accurately budget for future purchases of electrical contracting services and make plans accordingly.
Get more detailed informaton, including vendor statistics, RFP elements, negotiating tactics, market dynamics and more on this and hundreds of other products and services. More Info