Growth in health sector demand has contributed to Medical and Scientific Equipment Wholesaling industry revenue growth in recent years
Melbourne, Australia (PRWEB) May 01, 2012
The Medical and Scientific Equipment Wholesaling industry is estimated to record moderate revenue growth over the five years through 2011-12, supported by steady growth in the health sector and within research industries. The mining boom in Australia has also provided opportunities for professional equipment wholesalers in terms of increased demand for electronic measuring and exploration equipment. In the health sector, steady growth in government spending and demand for health services has driven demand for medical and surgical equipment. According to IBISWorld industry analyst Alen Allday ‘total industry revenue is forecast to rise by an annualised 1.9% in the five years through 2011-12 to $7.47 billion’. This includes a small decline in 2008-09 as the global financial crisis stifled industry growth and downstream demand. IBISWorld estimates that industry revenue increased strongly in the following year, with further growth of 2.1% estimated in 2011-12.
The development of the Medical and Scientific Equipment Wholesaling industry, growth in new product segments and additional market opportunities have contributed to increases in the number of companies and employees in the industry over the past five years. This trend is also expected to continue in future years. ‘A relatively strong Australian dollar over the next five years will keep down the cost and sales price of imported equipment’ adds Allday. Price competition is expected to put pressure on margins, which will encourage wholesalers to seek efficiency gains and limit employment and wage growth.
The main reason for low overall concentration in this industry is the broad range of products offered and markets served. This industry is relatively fragmented due to the high number of specialist products that are provided to end-users. No company dominates the entire industry but several firms have high market shares in particular niche market segments such as GE Healthcare and Siemens in the medical and surgical equipment segments. Other major players include ABB, Toshiba and Agilent Technologies.
For more information, visit IBISWorld’s Medical and Scientific Equipment Wholesaling report in Australia industry page.
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IBISWorld industry Report Key Topics
Firms in this industry are wholesalers of scientific, medical or other professional equipment. Most wholesalers in this industry undertake sales and administrative activities such as: establishing relationships with manufacturers and retailers to ensure the reliable supply and demand of stock, marketing and advertising of products, and storage and transportation of stock.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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