Laboratory Supply Wholesaling in Canada Industry Market Research Report Now Available from IBISWorld
The dip in demand for lab equipment during the recession caused revenue to decline, and wholesale bypass is becoming a popular cost-cutting measure used by retailers; nonetheless, recovering downstream demand in major markets, such as pharmaceuticals and biotechnology, will far outbalance recent trends of customers bypassing wholesalers, helping revenue grow over the period. For these reasons, industry research firm IBISWorld has added a report on the Laboratory Supply Wholesaling industry to its growing industry report collection.
Los Angeles, CA (PRWEB) August 21, 2013
The Laboratory Supply Wholesaling industry's revenue, which dipped and recovered quickly during the five years to 2013, closely follows demand from scientists and laboratories. Over the period, research and development (R&D) expenditure is expected to contract slightly at an annualized rate of 0.4% as a result of a dip during the economic downturn. The industry's equipment and supplies are relatively discretionary for laboratories; new equipment is not necessary, although it may facilitate and enhance some aspects of research. Consequently, when R&D expenditure dropped during the recession, spending on industry products also fell, causing revenue to decline in 2008 and 2009. Because of the dip in demand, revenue is expected to grow a sluggish 2.0% per year on average during the five-year period, says IBISWorld industry analyst Anna Son. In 2013, revenue is expected to grow stronger 6.2% to $2.7 billion on the back of rebounding demand for laboratory supplies.
Industry profit also experienced highs and lows over the past five years. The dip in higher-margin discretionary purchases dramatically cut into profit in 2008 and 2009. Increased internal and external competition also dented profit as customers shopped around for the best deals on supplies. Simultaneously, a tight lending environment prevented many companies from executing mergers and acquisitions (M&A) during the five-year period; however, these activities are anticipated to resume in 2013. Restructuring costs from M&As and competition from online retailers will likely challenge industry players over the next five years, continues Son. The Laboratory Supply Wholesaling industry has a low level of market share concentration. The top firms are Thermo Fisher Scientific Inc. and VWR International.
Consolidation is forecast to cause the number of industry firms to decline in the five years to 2018. In addition, wholesale bypass, where customers buy directly from manufacturers, is becoming a popular cost-cutting measure used by retailers. Nonetheless, recovering downstream demand in major markets, such as pharmaceuticals and biotechnology, will far outbalance recent trends of customers bypassing wholesalers. For more information, visit IBISWorld’s Laboratory Supply Wholesaling in Canada industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
Companies in this industry wholesale laboratory, scientific and school equipment, instruments and supplies (except for medical, hospital, vision and dental equipment and supplies).
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 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.
For the original version on PRWeb visit: http://www.prweb.com/releases/2013/8/prweb11050607.htm