Waterproofing coatings reportedly have a buyer power score of 3 out of 5, a score that reflects better negotiating conditions for buyers. “Buyer power has been decreasing during the past three years but is expected to increase in the future as competition among suppliers continues to intensify,” said Pierre Dessertenne, business research analyst with IBISWorld.
Competition among suppliers—especially manufacturers—is expected to continue to strengthen buyer power. “Strong marketing efforts by manufacturers, combined with product and financial incentives, are expected to drive up sales over the next three years and increase buyer power,” Dessertenne said. Competition among manufacturers will benefit distributors as well as their buyers due to increased sales and price competition. Furthermore, the large quantity of vendors ensures buyers a wide selection of waterproofing coatings. Buyer power is also strengthened by low switching costs and short lead times, allowing buyers to fully take advantage of the competitiveness of the market.
Over the next three years, demand for waterproofing coatings is expected to increase. Construction activity is expected to continue rising as it has in the past three years, stimulating demand for waterproofing coatings. In addition, as a result of a growing economy, private spending on home improvement and the number of businesses are expected to increase, which will boost demand for waterproofing coatings.
For more information, visit www.ibisworld.com.