Medical uniform prices are forecast to rise on the back of increasing raw material prices and surging demand
Los Angeles, CA (PRWEB) June 21, 2014
Medical uniforms have a buyer power score of 3.7 out of 5. According to IBISWorld procurement analyst Anna Son, “This above-average score reflects a mix of favorable and hindering conditions existing in the market that have been influencing buyer negotiation power over the three years to 2014.” During the period, growing demand for medical uniforms, which are largely regarded as nondiscretionary, and increasing input costs have underpinned price growth. On the other hand, fierce market competition and rising import penetration have prevented prices from spiking. The price of medical uniforms is projected to continue trending upward over the three years to 2017. The aging population of baby boomers and the greater number of insured individuals will bolster demand for healthcare services, prompting hospitals and other healthcare facilities to restock their medical supply inventory. As a result of increasing demand for medical uniforms, prices will follow suit.
“An abundance of suppliers and low switching costs further sustain buyer power,” says Son. Despite the presence of a few notable players, such as Cardinal Health and Medline Industries, the vast majority of suppliers are small and midsize firms operating on a local or regional basis. While suppliers offer various product customization options, most medical uniforms are largely commoditized and easily comparable among suppliers. There are no direct hidden costs associated with procuring medical uniforms, making it easier for buyers to switch suppliers.
On the other hand, rising market share concentration and a medium risk of supply chain disruptions undermine buyer power. As large suppliers seek to acquire smaller competitors to expand their product offerings and geographic presence, they may gain greater control over market prices, thus reducing the number of suppliers to choose from and eroding market competition. Buyers should also be aware of the risk associated with fluctuations in the prices of raw materials, such as synthetic fibers and cotton. Any changes in the prices or availability of these raw materials will be immediately reflected in the price of medical uniforms because purchases make up a significant operating expense for suppliers. The four major vendors in the market are Cardinal Health, McKesson, Kimberly-Clark, and Henry Schein.
For more information, visit IBISWorld’s Medical Uniforms procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.
IBISWorld Procurement Report Key Topics
This report is intended to help buyers of medical uniforms, such as scrub shirts, scrub pants and bouffant hats. Medical uniforms are garments worn by healthcare professionals during surgical or other medical procedures. Most medical uniforms are made from cotton, polyester and other stretchy materials; they come in various colors and sizes. Buyers may also choose to customize their products by adding their organization's logo to the medical uniform. This report excludes medical shoes and surgical textiles, such as reusable and disposable surgical drapes, gowns and jumpsuits.
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.