Laboratory Supply Wholesaling in Canada Industry Market Research Report from IBISWorld Has Been Updated

New York, NY (PRWEB) March 06, 2015

The Laboratory Supply Wholesaling industry distributes laboratory, scientific and school equipment and supplies. Professional laboratory and scientific equipment account for nearly three-fourths of industry sales, so revenue closely follows the performance of scientific and technical service industries. While demand from such industries rose strongly following the recession, growth has slowed to a moderate pace in recent years. Overall, revenue is anticipated to grow at an annualized rate over the five years to 2015.

According to IBISWorld Industry Analyst Britanny Carter, “The growing prevalence of wholesale bypass, which is when businesses purchase directly from manufacturers, has negatively impacted industry wholesalers that distribute school supplies and other niche products.” Comparatively, wholesale bypass has not significantly affected larger industry players, such as Thermo Fisher Scientific, thanks to their vertical integration. However, industry companies are actively consolidating; by acquiring smaller players with innovative products, companies are able to simultaneously expand their customer base and reduce competition. Consequently, the number of companies operating in the industry has declined slightly over the past five years.

The profit margins of several laboratory distributors have expanded due to consolidation and growing demand; however, price competition from wholesale bypass has limited returns for many others. “Many retailers are purchasing school supplies and other equipment directly from overseas manufacturers, limiting demand for industry players,” says Carter. As a result, the industry’s product mix has continued to shift toward laboratory and testing supplies, which comprise the majority of demand.

Returns are expected to grow over the five years to 2020 as the industry continues to consolidate and research and development expenditure increases. During the period, consolidation is anticipated to reduce the number of industry operators. Growing demand from biotechnology and improved research and development budgets are forecast to boost revenue over the period. While demand for educational services is expected to improve, wholesale bypass will hamper revenue from school equipment and supplies and limit industry growth.

For more information, visit IBISWorld’s Laboratory Supply Wholesaling in Canada industry report page.

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IBISWorld industry Report Key Topics

Companies in this industry wholesale laboratory, scientific and school equipment, instruments and supplies. This industry excludes companies that predominantly distribute medical, hospital and dental equipment and supplies.

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 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://ift.tt/UiKiKD or call 1-800-330-3772.

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