New York, NY (PRWEB) September 21, 2014 -- The Laboratory Testing Services industry is composed of companies that help businesses and manufacturers perform tests on items ranging from consumer and food products to industrial materials. In an increasingly regulated society, pressure on operators to ensure the safety and quality of their products is higher than ever. A greater number of government safety regulations and consumer lawsuits have led to rigorous testing of manufacturers' goods prior to sale. Although revenue briefly dipped in 2009 as the US economy suffered from the recession, revenue has since rebounded, driven by renewed consumer spending and companies' investments in the development of new products. As a result, IBISWorld estimates industry revenue to grow over the five years to 2014. Additionally, the Laboratory Testing Services industry have thrived because of increased government regulation on consumer and food products, leading to a rise in revenue in 2014 alone. Specifically, testing laboratories have an advantage during economic downturns because many clients opt not to abandon testing, preferring instead to cut costs in other ways.
During the past five years, the industry has experienced an increase in market share concentration due to consolidation trends among industry operators. As larger players acquire smaller firms, they are able to expand their products and services to new markets and work with a larger number of industries. In fact, the number of establishments employing more than ten workers has risen during the past five years, suggesting an increase in larger player dominance. Furthermore, the proportion of establishments with fewer than five employees has declined over the same period.
Over the five years to 2019, the industry is projected grow rapidly as companies accommodate stricter environmental regulations and invest in new products, thereby increasing R&D expenditure. IBISWorld expects industry revenue to grow over the next five years. A projected increase in government regulation concerning consumer products and greater pressure on producers to create high-quality goods will ensure stable growth. In addition, stringent environmental legislation and growing demand for environmentally friendly technologies are expected to drive industry growth. At the same time, industry operators will experience an increase in merger activity as larger testing laboratories acquire smaller players to expand service offerings.
For more information, visit IBISWorld’s Laboratory Testing Services in the US 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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About IBISWorld Inc.
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 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.
Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]
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