New York, NY (PRWEB) July 30, 2014
The Surgical Apparel Manufacturing industry is expected to grow modestly during the five years to 2014. Industry products are used to prevent contamination during surgery and, therefore, demand for surgical apparel is directly linked to the number of surgeries performed. While the aging baby boomer population and obesity epidemic have translated to an increasing amount of surgeries, these trends are predominantly reliant on gradual demographic shifts and have not substantially grown over the past five years. Legislative reforms, however, have expanded the number of insured individuals that can afford surgical procedures. Specifically, the Patient Protection and Affordable Care Act (PPACA) is anticipated to provide medical coverage to the majority of Americans in coming years. Several reforms within the act came into effect in 2014, bolstering revenue during the year.
Despite overall growth, low-cost imports have limited demand for industry products. Countries like China benefit from lower labor costs and competitively price their products to compete with domestically produced goods. In response, many manufacturers have focused on creating innovative products that compete on the basis of quality rather than price. For example, major player Medline launched the first long-sleeved scrub top in 2012. Increased demand for these price-premium products, coupled with industry consolidation, has expanded the average industry profit margin during the five-year period, despite price hikes for key material inputs like plastic. Nevertheless, lower import prices are expected to boost imports' share of domestic demand by 2014. This trend is forecast to persist over the next five years, as emerging economies increasingly develop their manufacturing processes and appreciation of the US dollar reduces the relative cost of imports.
The Surgical Manufacturing industry is characterized by a high level of market share concentration. Despite heightened import competition, the PPACA will accelerate industry growth by bolstering the number of insured Americans able to afford surgical services. Moreover, the aging population will continue to increase demand for surgeries that necessitate greater use of surgical apparel. Consequently, industry revenue is expected to grow in the five years through 2019. Industry profit is also expected to expand, thanks to increased automation and relatively stable input prices over the next five years.
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IBISWorld industry Report Key Topics
The Surgical Apparel Manufacturing industry manufactures sterile surgical apparel such as surgical gowns, drapes, shoe covers and face masks. Surgical apparel is used to reduce the transfer of bacteria from surgical staff to the patient, while also protecting the staff from blood, urine, saline or other chemicals and bodily fluids during surgical procedures. This industry does not include apparel worn underneath protective gear, nor items sold for veterinary or laboratory use.
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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