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Laboratory Supply Wholesaling in Canada Industry Market Research Report Now Available from IBISWorld
Date:8/21/2013

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 '/>"/>

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