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Floor-Grade Instruments Procurement Category Market Research Report from IBISWorld has Been Updated
Date:7/12/2014

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

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