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Snowplowing Services in the US - Industry Market Research Report

Snowplowing Services in the US - Industry Market Research Report

  • April 2021
  • 35 pages
  • ID: 5103944
  • Format: PDF
  • Ibisworld

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Forecast: Global warming may limit snowfall, but an expanding economy will underpin demand

Abstract

Snowplowing Services

The Snowplowing Services industry has a very low market share concentration, where the two largest operators, BrightView Holdings Inc. and US Management, comprise the majority of national snowplowing companies. The nature of services provided by this industry hinders the ability of operators to expand their operations beyond a regional level. The majority of industry establishments are composed of local, one-man operation businesses and independent contractors.

Regionality hinders market growth

• Due to its localized, service-oriented nature, the Snowplowing Services industry has difficulty concentrating its market share. Many of the operators in this industry are one-man nonemployer operations lacking the economies of scale and labor needed to expand operations. Barriers to entry for this industry includes development of a strong reputation through word-of-mouth marketing, allowing even the smallest snow removal companies to compete effectively against national operators. Additionally, clients like to work with companies which have a proven track record, adequate business liability insurance and access to well-trained personnel.

Price and service quality drive competition
• Competition between industry operators depends on several factors, including price and quality of service, terms of contracts (if any), the operator’s reputation, level of professionalism and affiliation with trade organizations such as Snow & Ice Management Association (SIMA). Furthermore, for residential clients, price of service is generally more important than an operator’s quality of service and reputation, while price is a relatively less important factor for commercial clients. Operators can also gain a competitive advantage by providing proof of contractor’s insurance or accreditation from a third-party organization such as Accredited Snow Contractors Association (ASCA).

Companies in this industry provide snowplowing and ice removal services. The industry does not include ice removal or snowplowing by municipalities and government.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

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