Prices are expected to continue rising due to escalating demand for healthcare services, which will stem from the growing number of insured individuals and aging baby boomers
Los Angeles, California (PRWEB) November 26, 2014
Medical suction and vacuum products have a buyer power score of 3.9 out of 5. This score represents steady growth in the price of medical suction supplies over the three years to 2014 as a result of swelling demand for healthcare services and subsequent demand for medical suction machines, which are largely considered nondiscretionary. IBISWorld market research analyst, Anna Son, says, "When entering the purchasing process, buyers have some degree of flexibility, given the low level of price volatility for medical suction and vacuum 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.
Buyers will also face low switching costs, given the large pool of suppliers and moderate product specialization for medical suction and vacuum products. 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 buyer negotiation power," says Son. 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. Major vendors in the market include Cardinal Health, Covidien PLC and Owens and Minor Inc.
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 recoup their production expenses. However, the competitive nature of the medical suction and vacuum product market and the rising power of GPOs will help prevent prices from spiking and give buyers more price negotiation leverage. For more information, visit IBISWorld’s Medical Suction & Vacuum Products 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 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 is 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
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.