Medical Equipment & Supply Wholesalers Industry Overview

Excerpt from Medical Equipment & Supply Wholesalers Report

Companies in this industry distribute professional medical equipment, instruments, and supplies to physicians, hospitals, and extended care facilities. Major companies include Henry Schein, Owens & Minor, Patterson Companies, and PSS World Medical (all based in the US), along with Amplifon (Italy), DICIPA (Mexico), and EBOS Group (Australia).

Competitive Landscape

Demand depends on the number of people receiving medical treatment. The profitability of individual companies depends on merchandising and efficient delivery systems. Large companies have economies of scale in purchasing, and highly developed infrastructure that allow for efficient distribution. Small companies can compete effectively by specializing in a product line or servicing a local customer base. The US industry is concentrated: the top 50 companies account for about 70 percent of revenue.

Products, Operations & Technology

Major products include medical and surgical instruments and equipment (about 45 percent of revenue); supplies (about 40 percent); and dental equipment and supplies (about 5 percent). Other products include orthopedic and prosthetic appliances, and veterinary supplies. Some companies carry over 90,000 stock-keeping units (SKUs) while others specialize in niche markets and may carry only a few different stock items to serve a local market’s specific needs.