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Researchers Expect a Marginal Increase in Laboratory Product Budgets for 2013, Finds Frost & Sullivan
Date:3/14/2013

th academic and government labs expect their product budgets to increase in 2013.

"Academic labs had the smallest budgets on average in 2012, but respondents from this segment forecast their 2013 product budgets will grow by 3.0 percent, more than any other lab type," said Frost & Sullivan Life Sciences Principal Analyst Jonathan Witonsky . "Academic labs anticipate an unparalleled 6.0 percent increase in spending on instruments, which is also the biggest lab expense."

Respondents from government labs expect a mere 0.1 percent growth in their 2013 product budgets. However, their intention to spend more than they did in 2012 is encouraging, given the bleak outlook for federal funding.

Respondents from biopharmaceutical labs aim to increase their product budgets by 0.6 percent in 2013. This is a modest hike, considering Frost & Sullivan forecast a 4.6 percent growth in the overall biopharmaceutical market. Due to continued industry consolidation, R&D spending is not commensurate with revenue growth.

Respondents from industrial labs also expect an ordinary product budget increase of 1.1 percent in 2013. Industrial labs deal with a broad range of applications – from chemical and petrochemical to food and beverage – and so, product budgets vary accordingly. Overall, industrial lab product budget growth rates mirror economic growth, which is forecast to remain below 3.0 percent.

"Patient care labs are the only type to report an anticipated budget decline in 2013," noted Witonsky. "Survey respondents expect their product budgets to shrink by 0.6 percent in 2013, but it is unlikely the trend will persist, as the Affordable Care Act in 2014 will add 19.5 million patients."

In the service and repair sector, laboratories allocate most of their budget to manufacturer service contracts, but in-house service departments and do-it-yourself services are also widely used. The latter appea
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