Improving economic conditions stimulated demand for laboratory testing services.
New York, NY (PRWEB) March 02, 2015
In the five years to 2015, the Laboratory Testing Services industry has experienced robust growth. The industry, which consists of companies that perform tests on consumer products, industrial materials, energy resources and other goods, has grown on account of an improving economic climate and rising government regulation. As a result, IBISWorld forecasts that industry revenue will increase at an annualized rate of 2.8% to reach $946.8 million over the five-year period, including an anticipated increase of 2.8% in 2015 alone.
“Improving economic conditions have stimulated demand for laboratory testing services. Consumer spending has exhibited solid growth over the five years to 2015,” according to IBISWorld Industry Analyst Dmitry Diment. Likewise, corporate profit, which plummeted during the recession, has shown significant improvement during the period. As a result, research and development (R&D) spending has improved in the past five years. Improving R&D expenditure has been a boon for industry operators, as the development of new products has spurred demand for industry services.
Moreover, increased regulation across a number of the industry's downstream markets has driven demand for laboratory testing. “More stringent regulation, which sets health and safety standards across every industry, forced companies to test their products in laboratories to ensure that they are in compliance with code,” says Diment. Rising environmental concerns led to new Canadian Ambient Air Quality Standards in 2013, which are more comprehensive than the previous standards for a number of pollutants. In addition, the Canada Consumer Products Safety Act of 2010 established more stringent guidelines for compliance with regulations, including mandatory testing, in order to better protect consumers from dangers caused by consumer products. Consequently, businesses have increased their dependence on laboratory testing services over the past five years.
The five years to 2020 are expected to be equally as productive for the industry. Economic growth will have a positive effect on consumers and businesses, stimulating the development of new products and associated laboratory testing services to ensure safety and quality. Likewise, concerns regarding health and safety are expected to remain important to consumers, fuelling public clamour for more comprehensive regulation, particularly in the oil and gas industry.
For more information, visit IBISWorld’s Laboratory Testing Services in Canada industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry perform physical, chemical and other analytical testing for commercial purposes. Such testing may occur in a laboratory or on-site (i.e. where the product is manufactured or developed). Most results from industry-led tests are checked against government regulations and environmental, industrial and product standards. This industry excludes medical and veterinary testing labs.
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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld 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.