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Medical Supplies Wholesaling in the US Industry Market Research Report Now Available from IBISWorld

Los Angeles, CA (PRWEB) October 27, 2013

The Medical Supplies Wholesaling industry distributes products generally used for nonelective procedures intended to improve or maintain health. Demand for wholesale activities associated with products is highly correlated with demand for the products themselves. The median age of the population has risen over the past five years, and as a result, the number of age-related nonelective procedures performed in the US has increased as well. Accordingly, the Medical Supplies Wholesaling industry has exhibited robust revenue growth in the five years to 2013, with the exception of a temporary decline during the recession. In particular, demand for medical devices used in elderly care (including neurological and cardiovascular products) increased over this period and is expected to continue rising during the next five years.

According to IBISWorld Industry Analyst Jocelyn Phillips, “in addition to increased demand, rising product prices also contributed to industry growth.” Over the past five years, industry revenue is expected to increase, including a significant increase during 2013. However, rising product prices are largely a result of increasing input prices; due to these more expensive inputs, as well as stringent government regulations, average industry profit margins have remained nearly flat in the past five years, hovering near revenue during the past five years.

Moreover, in 2013, IBISWorld estimates that the top four firms in Medical Supplies Wholesaling industry (including Cardinal Health, Owens & Minor Inc., Henry Schein and Patterson Companies) will generate more than 10.0% of total industry revenue (see IBISWorld report 42345 for major player market shares). The dental supply market is highly concentrated, with Henry Schein and Patterson Companies controlling the majority of the market. The physician office market is split almost evenly between large, national players and smaller, regional players. Furthermore, mergers and acquisitions among medical device manufacturers will cause wholesalers to consolidate in order to maintain negotiating power and meet the demands of newly expanded customers. “While consolidation will help industry firms reduce costs, profitability is still expected to suffer moderately from healthcare reform legislation, which imposed a 2.3% excise tax on medical device manufacturers in January 2013,” says Phillips.

Over the five years to 2018, IBISWorld expects industry revenue to grow. Revenue is projected to rise as healthcare providers that delayed major medical purchases during the recession begin to invest in newer equipment. New product development by medical device manufacturers will also contribute to industry growth by offering solutions to previously unsolved health issues.

For more information, visit IBISWorld’s Medical Supplies Wholesaling in the US industry report page.

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IBISWorld industry Report Key Topics

Medical supplies wholesalers purchase medical and surgical equipment, instruments and supplies, store these items at distribution centers, and deliver these products and related services to medical and dental practitioners, clinics and hospitals. The industry does not handle instruments and goods that are distributed to ophthalmologists, optometrists and opticians.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

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 or call 1-800-330-3772.

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