Industry profit has been hampered by rising competition between wholesalers and manufacturers of medical and professional equipment.
Melbourne, Australia (PRWEB) February 06, 2015
Operators in the Medical and Scientific Equipment Wholesaling industry in Australia have recorded strong revenue growth over the past five years, supported by steady demand growth from the health sector, medical centres and research industries. According to IBISWorld industry analyst Alen Allday, “increased demand for electronic measuring and exploration equipment as a result of the mining boom has also provided opportunities for industry wholesalers.” In the health sector, strong growth in government health funding and demand for health services have driven demand for a range of medical and surgical equipment from the industry.
Industry revenue is estimated to rise by an annualised 6.0% in the five years through 2014-15, to $15.5 billion. This includes strong revenue growth of 11.4% in 2012-13, due to the high Australian dollar resulting in low import prices together with strong demand from downstream client industries. Revenue is expected to grow by 3.1% in 2014-15. A high proportion of medical and scientific equipment wholesaled by the industry is imported. These products come from a range of companies that supply products across many price points. “Products range from high-end medical diagnosis equipment manufactured in Germany and the United States to basic medical supplies such as bandages and swabs,” says Allday. Industry profit has been hampered by rising competition between wholesalers and manufacturers of medical and professional equipment over the past five years. This has been due to rising product costs from international manufacturers, although the strong Australian dollar in most years has limited the negative effects of rising foreign prices. As the Australian dollar has depreciated over the past two years, industry prices have increased due to more expensive imports. This is expected to result in industry profit declines in 2014-15. The industry exhibits low levels of market share concentration.
Growth across new product segments and additional market opportunities are expected to contribute to revenue, profit, establishment and employment growth over the five years through 2019-20. While demand for Medical and Scientific Equipment Wholesaling industry products remains high and the domestic economy continues to expand, industry profit is projected to increase slightly, as industry costs and wages decrease as a proportion of revenue.
For more information, visit IBISWorld’s Medical and Scientific Equipment Wholesaling industry in Australia report page.
Firms in the industry wholesale scientific, medical or other professional equipment. Most wholesalers in the industry undertake sales and administrative activities including establishing relationships with manufacturers and retailers to ensure a reliable supply and demand of stock, marketing and advertising of products, and storage and transportation of stock.
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IBISWorld industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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