Growth has been supported by steady demand growth from the health sector, medical centres and research industries.
Melbourne, Australia (PRWEB) May 04, 2014
The Medical and Scientific Equipment Wholesaling industry in Australia is expected to record moderate revenue growth over the five years through 2013-14, supported by steady demand growth from the health sector, medical centres and research industries. The mining boom has also provided opportunities for professional equipment wholesalers through increased demand for electronic measuring and exploration equipment. According to IBISWorld industry analyst Alen Allday, “In the health sector, steady growth in government spending and demand for health services has driven demand for a wide range of medical and surgical equipment from the industry.” Industry revenue is expected to rise by an annualised 1.8% in the five years through 2013-14, to $11.0 billion. This includes relatively low growth in 2009-10, followed by steady increases in subsequent years. Revenue is expected to grow by 2.3% in 2013-14.
A high proportion of medical and scientific equipment wholesaled by the industry is imported. These products are from a wide range of companies that supply products across many price points, from high-end medical diagnosis equipment manufactured in Germany and the United States, to basic medical supplies such as bandages and swabs. Industry profit has been hampered by rising competition between wholesalers and manufacturers of medical and professional equipment in the five years through 2013-14. “This has been due to rising product costs from international manufacturers, although the strong Australian dollar has limited the negative effects of rising foreign prices,” says Allday. An estimated 2,112 firms are operating in the Medical and Scientific Equipment Wholesaling industry in 2013-14, with annualised growth of 1.0% in the past five years. The industry employs about 17,200 people, up from 15,700 in 2008-09 on increased customer demand. The industry exhibits a low level of market share concentration, with no operators controlling a significant share of revenue.
Growth across new product segments and additional market opportunities are forecast to contribute to establishment and enterprise growth over the five years through 2018-19. While demand for industry products remains high and the domestic economy continues to expand, industry profit is forecast to increase only slightly, as the weaker dollar increases import costs.
For more information, visit IBISWorld’s Medical and Scientific Equipment Wholesaling report in Australia industry page.
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IBISWorld industry Report Key Topics
Firms in the industry wholesale scientific, medical or other professional equipment. Most wholesalers in the industry undertake sales and administrative activities including establishing relationships with manufacturers and retailers to ensure the reliable supply and demand of stock, marketing and advertising of products, and storage and transportation of stock.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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