As the population ages and healthcare reform gives more people coverage, demand is forecast to expand
Los Angeles, CA (PRWEB) June 17, 2013
The Hearing Aid Clinics industry has contracted slightly during the past five years as declines in insurance coverage and consumer income combined with rising hearing aid prices. Following the financial crisis, a number of individuals were left “without private health insurance coverage as unemployment levels rose,” says IBISWorld analyst Austen Sherman. “In addition, disposable income fell, leaving hearing aids as a luxury for a large number of those in need.” As a result, industry revenue declined from 2009 through 2011.
More recently, the Hearing Aid Clinics industry has returned to growth, says Sherman. “Employment levels have improved slightly and federal funding for health insurance programs has expanded in anticipation of healthcare reform.” As a result, IBISWorld estimates industry revenue will rise 3.2% in 2013. Nevertheless, recent performance will be unable to overcome earlier losses, resulting in anticipated revenue decline of 0.2% per year on average to $2.0 billion in 2013.
The past five years have exacerbated a broader trend of consolidation within the industry. The Hearing Aid Clinics industry's largest operators have always looked to purchase small nonemployers to expand their number of storefronts and increase their consumer exposure. Declining revenue even forced some of the industry's largest operators to declare bankruptcy, making them prime targets for acquisitions. For example, a Siemens AG affiliate purchased HearUSA in 2011 after the latter filed bankruptcy. Fortunately for the remaining operators in the industry, the consolidation has helped push profit margins slightly higher during the past five years.
During the next five years, the industry is expected to benefit largely from the implementation of the Patient Protection and Affordable Care Act; 32 million uninsured Americans are expected to gain coverage through 2019, according to the Congressional Budget Office. In addition, the number of individuals suffering from hearing deficiencies is expected to remain high due to the expanding diabetes epidemic, the rising use of mobile music devices and headphones and the aging US population. For more information, visit IBISWorld’s Hearing Aid Clinics in the US industry report page.
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IBISWorld industry Report Key Topics
This industry retails hearing aids for consumers of all demographics and ages. Industry operators often provide hearing tests and consultation services within the store as well.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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