Los Angeles, CA (PRWEB) April 04, 2014
Catheters have a buyer power score of 3.9 out of 5.0, reflecting favorable negotiating conditions for buyers. Prices for catheters have been declining during the past three years as buyers increasingly shift toward cheaper, single-use devices. “The emergence of disposable catheters arose because clinical research increasingly exposed the health risks associated with reusing catheters,” says IBISWorld procurement analyst Andrew Rebhan. In response to rising healthcare costs from infections and other complications from reused catheters, federal regulators put pressure on suppliers to make sterile, single-use catheters more accessible to downstream buyers. Increased Medicare funding and expanding private health insurance coverage have also boosted demand for these cheaper alternative devices.
Buyers currently have a wide range of suppliers from which to choose due to a low level of market share concentration, but the market is slowly becoming less fragmented as more suppliers seek to acquire other companies to bolster their operational capacities. “An increasing number of catheter manufacturers are developing their own distribution networks, which has put pressure on third-party wholesalers to reduce their profit margins to remain competitive,” says Rebhan. A less fragmented market could limit price-based competition, which until now has been beneficial for buyers of catheters as vendors have kept their prices closely in line with what their competitors are charging. Along the supply chain, buyers will face a moderate level of risk because some suppliers will struggle to control their input costs while others face potential default.
The purchasing process for buyers will have both positive and negative attributes. Catheter products come in a variety of styles, some with unique features and applications, which can give suppliers greater leverage due to their special design and generally low level of substitutes. Buyers also face a high total cost of ownership when purchasing catheters. On the other hand, buyers have a variety of suppliers and distribution channels to choose from and will benefit from short lead times, low switching costs and low price volatility. Major suppliers include C.R. Bard Inc., Covidien PLC, Boston Scientific Corporation and Teleflex Incorporated.
For more information, visit IBISWorld’s Catheters procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of catheters. These devices are thin, hollow tubes, typically made of plastic or rubber, which are inserted into the body. Catheters serve different purposes but are generally used to either deliver or drain fluids from an incision point or other opening in the body. These devices can be used for short-term drainage or over longer periods of time to maintain a body’s normal functioning. Some of the common catheter types include those used for urinary, intravenous and cardiac treatments. Suppliers of catheters include manufacturers and wholesalers. This report will focus primarily on urinary catheters.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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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.