Toxicology Laboratories in the US Industry Market Research Report Now Available from IBISWorld
As the American economy suffered from the dual impact of the financial meltdown and housing market collapse starting in 2007, toxicology laboratories began scaling back production and laying off workers, however, as companies start hiring again and more people gain healthcare coverage, demand for toxicology lab services is forecast to rise. For these reasons, industry research firm IBISWorld has added a report on the Toxicology Laboratories industry to its growing industry report collection.
Los Angeles, CA (PRWEB) November 27, 2013
During the five years to 2013, revenue in the Toxicology Laboratories industry is forecast to increase 1.0% per year on average to $2.0 billion, including growth of 1.2% in 2013. The majority of industry revenue comes from employee drug testing; therefore, industry performance is directly tied to employment rates. As the American economy suffered from the dual impact of the financial meltdown and the housing market collapse, companies began scaling back production and laying off workers. Slow job creation and fewer employed Americans over the past five years led to fewer drug screenings taking place throughout the recession, which hurt revenue for the Toxicology Laboratories Industry and slowed industry growth.
Nevertheless, drug use trends have encouraged more employers to opt for employee drug testing by toxicology laboratories. According to the National Survey on Drug Use and Health, in 2012 (latest information available), an estimated 23.9 million Americans aged 12 or older were illicit drug users. This estimate represents 9.2% of the population aged 12 or older and represents an increase compared with previous years. Additionally, according to the National Institute on Drug Abuse, the total cost of substance abuse in the United States exceeds $500.0 billion annually. Nearly $200.0 billion of this total is estimated for illicit drugs. According to IBISWorld Industry Analyst Jeremy Edwards, “To avoid productivity losses, employers have increasingly started relying on drug tests and toxicology laboratories to screen out undesirable employees.” According to a 2011 poll by the Society for Human Resource Management and the Drug and Alcohol Testing Industry Association, 56.0% of organizations require all job candidates to take a drug test prior to employment.
“During the five years to 2018, industry revenue is forecast to increase,” says Edwards. This rise will be due to employment growth that creates the need for more drug tests. The slow rise in incarceration rates and drug-related crimes will also drive demand for toxicology labs from the law enforcement sector. Furthermore, demand for toxicology labs from the medical sector will grow due to The Patient Protection and Affordable Care Act. As a result of the healthcare reform, about 32.0 million previously uninsured individuals will gain coverage by 2019. The larger pool of people requiring medical care will push up demand for medical-related toxicology testing.
The Toxicology Laboratories industry carries a low level of market share concentration. In general, the industry comprises a multitude of establishments spread across the entire country. As a result, no one firm dominates the landscape. Over the next five years, IBISWorld expects industry concentration to remain low given the widespread nature of the industry overall. Some consolidation is expected, though, which may enhance concentration slightly.
For more information, visit IBISWorld’s Toxicology Laboratories in the US industry report page.
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IBISWorld industry Report Key Topics
The Taxicology Laboratories industry receives and independently analyzes samples of biological material for various toxins, primarily drugs. Services include blood testing, saliva testing and urine testing. Employers, the medical community and law enforcement are major purchasers of this industry's services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.
For the original version on PRWeb visit: http://www.prweb.com/releases/2013/11/prweb11374452.htm