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Floor-grade instrument prices are forecast to grow in response to increased demand as the number of senior citizens and insured individuals rises. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Floor-Grade Instruments in its growing collection of procurement category market research reports.
Los Angeles, CA (PRWEB) July 12, 2014
Floor-grade instrument buyers have a buyer power score of 4.1 out of 5. This above-average score represents favorable conditions in the market that have been underpinning buyer negotiation power over the three years to 2014. According to IBISWorld procurement analyst Anna Son, during the period, surging demand for healthcare services and supplies, along with rising costs associated with new product development, have placed upward pressure on the price of floor-grade instruments, which are largely considered nondiscretionary. Meanwhile, fierce market competition has warranted strong price competition, preventing prices from spiking. Over the three years to 2017, floor-grade instrument prices are forecast to rise as the growing population of senior adults and the rising number of insured individuals drive demand. The rising price of steel, the major raw material in surgical instrument production, will also contribute to price growth.
On a more positive note for buyers, a plethora of suppliers and low switching costs help sustain their negotiation power. Despite the presence of a few prominent suppliers, such as Cardinal Health and Owens & Minor, the vast majority of the market consists of small and midsize firms that operate on a local or regional basis. While there are differences between various types of floor-grade instruments, buyers should not experience any difficulties in finding a supplier that can effectively meet their purchasing needs. Moreover, there are no direct hidden costs associated with purchasing floor-grade instruments, making it easier for buyers to switch suppliers, says Son.
However, increasing market share concentration and a medium risk of supply chain disruptions are disadvantageous for buyers. As large suppliers seek to gain economies of scale through mergers and acquisitions, they will gain greater pricing control in the market. Rising consolidation can undermine buyer power and diminish price competition by reducing the number of suppliers to choose from. Buyers should also be aware of the risk associated with fluctuations in raw material prices as well as any regulatory changes that can be reflected in the overall price of floor-grade instruments. The four largest vendors in the market are Cardinal Health, Owens & Minor, Johnson & Johnson, and Kimberly-Clark.
For more information, visit IBISWorlds Floor-Grade Instruments procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of floor-grade instruments, including floor-grade forceps, floor-grade knives, floor-grade retractors and floor-grade scissors. Floor-grade medical instruments, which are often classified as single-use items, are made from inferior metals and have less stringent regulations for steel quality and manufacture than surgical-grade instruments. This report does not include surgical-grade instruments.
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, IBISWorlds 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.
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