Rising doctors visits will encourage health providers to purchase hospital furniture
Los Angeles, CA (PRWEB) August 24, 2012
The $689.8 million Hospital Furniture Manufacturing industry was hurt by the recession and subsequent tightening of hospital budgets, though things have turned around for the industry. Revenue is expected to increase 2.7% in 2012. Over the five years to 2012, IBISWorld estimates revenue will decline at an average annual rate of 3.1%. According to IBISWorld industry analyst Nima Samadi, demand for hospital furniture has declined as a result of threatened declines to government reimbursement, the uncertainty surrounding healthcare reform, the economic downturn and increased competition from imported hospital furniture. However, increased healthcare expenditure and doctors visits during the five years to 2017 will result in strong average annual revenue growth, which will push revenue to $844.0 million.
The US economic downturn deterred hospitals and other customers from purchasing hospital furniture. Continuing high unemployment from 2008 to 2010 caused the loss of health benefits for many individuals. People who cannot pay for healthcare often defer needed services. This decreased the demand for hospital furniture, particularly when fewer people were visiting hospitals or doctors, says Samadi. Domestic manufacturers are also experiencing increased competition from foreign manufacturers, particularly from low-wage countries such as China and Mexico. From 2007 to 2012, imports are anticipated to increase 10.3% per year on average to total $314.1 million. The Hospital Furniture Manufacturing industry exhibits a moderate level of market share concentration. The top companies are Stryker Corporation and Hill-Rom. Market share concentration is expected to increase as the number of companies decreases. Mergers and acquisitions will likely drive an increase in market share concentration, as some companies seek to expand their geographical presence, while others look to broaden their technological holdings.
Demographic shifts and changes in healthcare laws bode well for this industry's immediate future. The aging US population is a major factor driving demand, since the occurrence of health issues that require hospitalization is higher in the elderly population. Growth in the size of this demographic will increase hospitalization rates and, therefore, demand for hospital furniture. Furthermore, On March 21, 2010, Congress passed the Health Care and Education Affordability Reconciliation Act of 2010. As part of this reform, an estimated 32 million Americans will gain health insurance coverage by 2019. The act is expected to benefit the industry by encouraging more individuals to visit doctors. As a result, healthcare providers will purchase more hospital furniture. Demand from emerging markets like China, India, Russia and Brazil will further support industry growth. These countries are rapidly expanding their healthcare infrastructure. This will result in US industry exports growing over the five years to 2017. For more information, visit IBISWorld’s Hospital Furniture Manufacturing in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
[PASTE INDUSTRY DEFINITION]
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.