Millions of newly-insured individuals are expected to bolster demand for medical procedures and increase syringe prices.
Los Angeles, CA (PRWEB) May 31, 2014
IBISWorld estimates that buyers of syringes have a buyer power score of 3.7 out of 5. According to IBISWorld procurement analyst Anna Son, “the score represents steady growth in prices of syringes over the past three years due to rising demand for healthcare services and subsequent demand for syringes.” Syringes are generally perceived as nondiscretionary due to their indispensable nature. In addition, buyers continually invest in high-quality syringes because any compromised quality of medical products may have detrimental effects on a patient's health and safety. However, buyers have some level of flexibility when entering the purchasing process given the low level of syringe price volatility. In anticipation of steady demand and prices, buyers have time to evaluate their purchasing needs, as well as alternatives, without prospects of major price swings.
Given the large pool of syringe suppliers and low product specialization, the total cost of switching suppliers is low. Meanwhile, consolidation in the overall healthcare sector has propelled consolidation among suppliers of syringes. “While consolidation benefits suppliers by providing them with the ability to serve multiple locations, purchase inventory in bulk and share knowledge and expertise, it reduces negotiation power of buyers,” says Son. In order to increase their leverage, many buyers have joined group purchasing organizations (GPOs) that can receive favorable pricing for their members given their significant negotiating clout with medical supply manufacturers and wholesalers.
During the three years to 2016, the average price of syringes is forecast to continue rising at a steady rate as a result of escalating demand for healthcare services. Demand will stem from growth in the aging population and the number of individuals with health insurance coverage that will require more medical procedures and supplies. The rising prices of plastics, glass and steel, major input costs, will also underpin prices of syringes as manufacturers will have to recoup their production expenses. However, a competitive nature of the syringe market and increasing power of GPOs will help prevent prices from spiking and provide buyers with more leverage in price negotiation. The four largest vendors in the market are Becton, Dickinson and Company, Covidien PLC, Smiths Medical, and Cardinal Health.
For more information, visit IBISWorld’s Syringes and Accessories procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of medical syringes and accessories. There are different types of syringes available, including hypodermic syringes, medical bulb syringes, blood collection syringes and fountain syringes. Although there are many syringe designs available, virtually all of them have the same features, including a barrel, plunger, needle and cap. Since syringes come in direct contact with a patient’s body, they are required to be made from biocompatible materials. This report does not include syringes used for nonmedical purposes.
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
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.