The Grounds, Landscaping & Snow Key Metric Analysis is designed to provide the market dynamics and associated key elements that encompass the operations of Grounds, Landscaping and Snow operations. For the purposes of providing a "baseline trend" the below data provides a guideline on market operational dynamics, trends, developments and SWOT analysis.
The below analysis primarily relates to Americas and EMEA but can also be used as an indicative guide for the APAC region as well.
Updates will occur at least semi-annually, but more frequent as market conditions change based upon market variability, criticality of events and velocity of market conditions, such as inflationary increases / resource and material availability.
1. Overview
Ver 1.0 (Aug 23)
Confidential & Proprietary | 2023 CBRE Inc.
2. Buyer Power Score
Buy LATER
The current market power score for Security manned guarding is -1.9 for the average across 2020-2023 period but is expected to improve in 2023 resulting in stronger negotiating positions.
3. Market Dynamics
Price Trend
(2020-2023) (CAGR)
Price Forecast
(2020-2026) (CAGR)
Supply Chain Risk
ESG Level
3.4 %
2.0 %
Low
Medium
4. Top 5 Global Suppliers (CBRE)
AMERS
EMEA
APAC
XXX
XXX
XXX
5. Recent Developments
Positive Trends
Neutral Trends
Warning Trends
None to Report
None to Report
Labour shortages
Market wage adjustments
6. Buying Power Levers
No Buyer Threat
To Investigate
Threat to Buyer
Supply Chain Risk: MED
- Risk of Supply chain delays
Supplier Risk: LOW
- Little risk of Supplier insolvency
Substitute suppliers: MED
- Relative high number of potential alternatives available on market
Market Share: MED
- Top 5 Suppliers hold more than 40% of Global market
Price Driver Volatility: MED
- Price drivers in last 2 years have fluctuated moderately
Product Speculation: High
- Due to artificially low wage controls pre-COVID-19, expect pricing and program adjustments
- Highly customised solutions are used in the market limiting the pool of qualified Suppliers
8. SWOT Review
Strengths
Weaknesses
- Buyers experience few unexpected or hidden costs in this market Low total cost of ownership allows buyers to better budget
- Most costs are expected or can be negotiated beforehand
- Switching costs are moderate in the market, which makes it somewhat difficult for buyers to switch vendors in search of a more favorable deal
Opportunities
Threats
- Suppliers in this market have moderate commitments to ESG initiatives. As such, buyers are advised to seek out Suppliers that can satisfy internal ESG procurement goals or metrics
- Prices are forecast to increase quickly during the next three years
- Prices have been rising quickly during the past three years, which has forced buyers to act more urgently to mitigate price increments
- Prices for Security Guard Services have fluctuated sizably.
- Instability in market prices has been making it more difficult for buyers to anticipate prices and plan future purchases
Source data: Beroe Landscaping 2022
Source data: CBRE Spend Cube-Dec 2022
7. Cost Structure review
WAGES
OVERHEADS
(2020-2023)
(2023-2026) Forecast
(2020-2023)
(2023-2026) Forecast
3.1 %
2.5 %
2.5 %
1.9 %
Wages have been increasing on average despite a decline during COVID-19. Increased commercial activities and tight labor conditions have been incentivizing employers to raise wages to attract more workers, placing upward pressure on costs
In the next three (3) years, wages are expected to continue rising as commercial activity continues growing despite rising interest rates. This trend is expected to put further upward pressure on market prices
The price of professional indemnity insurance has been rising in line with growing business activity prompting suppliers to pass these costs on to buyers
Overhead costs are forecast to continue growing in the next three (3) years. As these costs continue to rise, suppliers will pass a portion of the costs to buyers
VOLATILE