Rising steel prices and new product development will raise prices of medical tissue closures.
Los Angeles, CA (PRWEB) April 14, 2014
Medical tissue closures have a buyer power score of 3.7 out of 5. According to IBISWorld procurement analyst Anna Son, “this score reflects slow growth in medical tissue closure prices during the past three years as a result of steady demand for healthcare services, including surgical procedures”. Medical instruments, such as medical tissue closures, are largely regarded as nondiscretionary. Additionally, because poor-quality products may have a detrimental impact on patient health and safety, buyers, such as hospitals and clinics, are willing to invest in good-quality surgical supplies. While the low level of price volatility provides buyers with some degree of flexibility in the selection process, buyers should consider entering supply agreements sooner than later to hedge against price increases.
Given the large pool of medical tissue closure suppliers that contribute to medium market share concentration, the total cost of switching suppliers is low. Mounting competition among suppliers has helped prevent prices from spiking during the past three years. Nevertheless, consolidation in the overall healthcare sector is spurring consolidation among medical tissue closure suppliers. While large suppliers provide buyers with some benefits, such as serving wider geographic regions and streamlining operations, rising market concentration can reduce buyer power. A buyer's ability to negotiate favorable prices is also affected by product specialization. “Buyers seeking highly specialized products have less leverage in price negotiation due to limited competition among niche suppliers,” says Son.
The average price of medical tissue closures is forecast to continue rising during the three years to 2017. The expanding aging population and the rising 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 supply chain risk is anticipated to remain medium, the medical equipment sector is highly regulated. Therefore, any changes in regulatory compliance may significantly impact buyers because suppliers will seek to pass increased costs on to downstream buyers. The largest vendor in the market is Johnson & Johnson.
For more information, visit IBISWorld’s Medical Tissue Closures procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of medical tissue closures. Medical closure and securement products are key components of surgical procedures; they are used for rapid and efficient closure of surgical wounds and to help reduce pain and accelerate rehabilitation. Some common product types include butterfly skin closures, clips for skin closures, medical clips and medical staplers.
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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