Floor Grade Instruments Procurement Category Market Research Report Now Available from IBISWorld

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There has been slow growth in the price of floor grade instruments over the past three years due to steady demand for healthcare services, including surgical procedures, and the low degree of price volatility gives buyers some flexibility when entering the purchasing process for these items. To help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of floor grade instruments to its growing collection of procurement category market research reports.

IBISWorld procurement market research
An increase in the average price is attributable to stable demand for surgical instruments, which are largely considered nondiscretionary

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.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Competitive Environment
Market Share Concentration
Vendor Financial Benchmarks
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

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.

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Gavin Smith
IBISWorld Inc.
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