Over the next three years, prices of medical suction products are expected to continue trending upward due to escalating demand for healthcare services, stemming from newly insured individuals and aging baby boomers.
Los Angeles, CA (PRWEB) May 30, 2014
Medical suction and vacuum products have a buyer power score of 3.8 out of 5. This score represents steady growth in the price of medical suction supplies over the past three years due to rising demand for healthcare services and subsequent demand for medical suction machines, which are largely considered nondiscretionary. When entering the purchasing process, buyers have some degree of flexibility, given the low level of price volatility for medical suction products. “With steady demand and prices, buyers have time to assess their purchasing needs and technical requirements, as well as alternative options, without the threat of major price spikes,” says IBISWorld procurement analyst Anna Son.
Buyers will also face low switching costs, given the large pool of medical suction and vacuum product suppliers and medium product specialization. Meanwhile, buyers may be negatively affected by increasing market consolidation, which has been caused by consolidation in the overall healthcare sector. While consolidation benefits suppliers by providing them with the ability to serve multiple locations, purchase inventory in bulk and share knowledge and expertise, it also reduces buyers' negotiating power. “In order to increase their leverage, many buyers have joined group purchasing organizations (GPOs) that are able to receive favorable pricing for their members due to their significant negotiating clout with medical supply manufacturers and wholesalers,” adds Son.
Over the next three years, the average price of medical suction products 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 an increase in the number of individuals with health insurance coverage who will demand more medical procedures and supplies. The rising prices of major inputs, including plastics, glass and steel, will further boost prices of medical suction products, as manufacturers will have to recoup their production expenses. However, the competitive nature of the medical suction and vacuum product market and the increasing power of GPOs will help prevent prices from spiking and provide buyers with more leverage in price negotiation. For more information, visit IBISWorld’s Medical Suction and Vacuum Products procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of medical suction and vacuum products. These products include medical suction machines, medical fluid solidifiers, medical suction cannulas or tubes, medical suction containers and medical suction sets or kits. Suction machines are medical devices used for removing liquids or gases by suction. Suction machines can also be used when a patient has moist cough or unable to effectively clear secretions from the throat.
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.