An increase in the average price is attributable to stable demand for surgical instruments, which are largely considered nondiscretionary
Los Angeles, CA (PRWEB) March 15, 2014
Floor grade instrument buyers have a buyer power score of 4.3 out of 5. This score reflects slow growth in prices of floor grade instruments during the past three years as a result of steady demand for healthcare services, including surgical procedures. Medical equipment, such as floor grade instruments, is largely seen as nondiscretionary expense because poor quality products may have a detrimental impact on patient health and safety. “Consequently, buyers, such as hospitals and clinics, are willing to invest in good quality surgical supplies,” says IBISWorld procurement analyst Anna Son. The low level of price volatility provides buyers with some degree of flexibility when entering the purchasing process. In anticipation of stable prices, buyers have time to evaluate their purchasing needs, as well as alternatives, without fear of major price swings.
Given the large pool of floor grade instrument suppliers that contribute to low market share concentration, the total cost of switching suppliers is low. Mounting competition among suppliers has helped prevent the prices of floor grade instruments from spiking during the past three years. “Nevertheless, consolidation in the overall healthcare sector is spurring consolidation among floor grade instrument suppliers,” says Son. The advantages of consolidation for suppliers include the ability to serve customers with multiple locations, purchase inventory in large volumes, share knowledge and expertise and develop technology platforms and decision support systems. However, consolidation among floor grade instrument suppliers may diminish buyer negotiating power. Major suppliers include Cardinal Health Inc., Johnson & Johnson, Owens & Minor Inc. and Henry Schein Inc.
The average price of floor grade instruments is forecast to continue rising during the three years to 2016. The aging population and the number of newly insured people will spur demand for healthcare services and surgical procedures, while changes in technology will increase the types and complexity of medical equipment. Although the supply chain risk is medium, the medical equipment sector is highly regulated, and, therefore, any changes in regulatory compliance may significantly impact buyers as suppliers will seek to pass increased costs on to end-customers.
For more information, visit IBISWorld’s Floor Grade Instruments procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of floor grade instruments, including floor grade forceps, floor grade knives, floor grade retractors and floor grade scissors. Floor grade instruments, which are often classified as single-use items, are made from inferior metals and have less stringent regulations for steel quality and manufacture than surgical grade instruments. Suppliers of floor grade instruments include manufacturers, wholesalers and retailers. This report does not include surgical grade instruments.
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
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