- Tags : | Facility Maintenance & Repair Services | Price trend | Price forecast | Procurement research | Category market forecast
Recent Price Trend - Facility Maintenance & Repair Services
In the three years to 2017, the average price of facility maintenance and repair services has been increasing an estimated 2.7% per year on average, primarily as a result of rising demand. Various macroeconomic trends, including the higher business activity, have been driving up demand during this time. For example, as consumer spending has increased, businesses have been experiencing an uptick in demand for their goods and services. In effect, businesses such as hotels, retailers and manufacturers have opened more locations to capitalize on rising consumer spending. This trend has been resulting in higher demand for facility maintenance among these buyer segments. In response, suppliers have been raising their prices.
Moreover, demand for specialized services, including fire protection, air treatment, restroom power cleaning and clean room sterilization, has been growing as workplace safety has become a higher priority for building managers. In response, large-scale operators capable of providing such services have increased their base facility maintenance and repair service offerings. This trend has prompted suppliers to raise their prices at a moderate pace. Price hikes, however, have been less significant among smaller operators that provide only nonspecialized services.
Limiting the impact of rising demand on service prices has been falling fuel prices. Suppliers use their own means to travel to and from the buyer's facility to perform services, making fuel the largest overhead expenditure item for suppliers. During the past three years, the price of gasoline has been dropping significantly due to the overproduction of crude oil. The savings in fuel costs has been preventing suppliers from raising prices more rapidly, benefiting buyers.
Low price volatility has also been aiding buyers. In general, buyers benefit when price volatility is low because it indicates that prices are not likely to fluctuate drastically, thereby enhancing buyers' ability to accurately budget for purchases. Nonetheless, because prices are still anticipated to rise, buyers are advised to enter into long-term service agreements now in order to lock in lower prices.
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