The aging population will bolster demand, but an excise tax may constrain margins
New York, NY (PRWEB) June 27, 2014
The Wheelchair Manufacturing industry has remained strong during the five years to 2014. Despite a volatile economy, the industry continues to grow because of favorable demographics and health spending. Since older adults mostly use wheelchairs, the aging population and continuing medical advances prolonging the lives of adults and children have increased demand for industry products. In addition, private and public healthcare spending is growing, further boosting industry revenue. According to IBISWorld Industry Analyst Sarah Kahn, “Although the industry has been negatively affected by rising material costs, such as the price of plastic, profit margins have increased due to higher demand and a more diverse range of high-quality wheelchairs.” From 2009 to 2014, revenue is expected to increase at an annualized rate of 2.5% to $882.7 million. In 2014 alone, revenue is estimated to grow 5.1%, driven by higher private health care spending.
In the five years to 2019, the industry is expected to continue to flourish. The population will continue to age, bolstering demand for medical care and long-term durable medical equipment, such as wheelchairs. “With baby boomers aging and the majority of consumers of industry products being over the age of 65, private and public spending is expected to rise,” says Kahn. With a majority of Americans wanting to receive medical services in their home as they age and preferring home care while recuperating from surgery, demand for industry products is expected to rise. Lastly, while changing input costs are expected to negatively impact profit margins, this will be offset by an increasing number of high-quality and personalized wheelchairs. Over the five years to 2019, revenue is forecast to increase.
Although the Wheelchair Manufacturing industry has a moderate level of globalization, there is also a substantial level of international trade. In 2014 exports are estimated to account for about 24.3% of revenue, while imports represent 25.6% of domestic demand. International markets, especially emerging markets, are expected to represent a substantial long-term opportunity for wheelchair manufacturers.
For more information, visit IBISWorld’s Wheelchair Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
The Wheelchair Manufacturing in the US industry manufactures manual and powered wheelchairs and powered scooters.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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