In the next three years, wheelchair prices are forecast to increase further; this rise will continue to be driven by growing demand from the aging population and greater healthcare spending
Los Angeles, CA (PRWEB) January 23, 2014
Wheelchairs have a buyer power score of 4.0 out of 5. This high score reflects a buyer's ability to negotiate lower prices due in part to the high number of suppliers. However, recent price trends have slightly weakened buyer power. Despite a volatile economy, wheelchair prices have continued to grow due to favorable demographic shifts and increased health spending. Rising prices for wheelchairs are largely due to increased demand stemming from the aging population. “Wheelchairs are mostly used by older adults, and with the rising number of people aged 65 and older, the demand for medical devices such as wheelchairs has increased,” says IBISWorld analyst Jordan Weinstein. “In addition, private and public healthcare spending is growing, further boosting demand for wheelchairs.” Suppliers have also been negatively affected by rising material costs, such as the price of plastic and rubber, in recent years. Moving forward, these volatile shifts in input prices are expected to be less drastic than in the past three years; input costs will rise at a much slower rate.
Fortunately for buyers, these increases in input material costs are mostly absorbed by suppliers' profit margins in an attempt to remain competitive in the wheelchairs market. “Profit margins vary between suppliers, which allows buyers to shop around for a vendor that will meet their requirements of both product and price,” adds Weinstein.
The top four suppliers in the market are large private companies that average more than 3,000 employees, with the largest, Invacare, being the only publicly listed company. Buyer power is aided by the medium market share concentration and the high level of competition among wheelchair suppliers. Such competition is magnified by the large number of wheelchair suppliers and low switching costs for buyers. In addition, the commoditized nature of manual wheelchairs has led to a wide variety of suppliers capable of satisfying specific buyer requirements. These conditions are very favorable for wheelchair buyers. However, buyers that require wheelchairs with a high level of customization have far fewer suppliers to choose from, resulting in a much higher price. As a result, buyers requiring less-specialized wheelchairs can more effectively negotiate prices with suppliers. For more information, visit IBISWorld’s Wheelchairs procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of wheelchairs. The report includes electric wheelchairs, but excludes scooters, stretchers, geriatric chairs and patient transport incubators. Related wheelchair products such as ramps, lifts and accessories are also excluded. Suppliers of wheelchairs include manufacturers, wholesalers and retailers.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement 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.