Industry Analysis & Industry Trends
Laboratory Supply Wholesaling industry 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. The growing prevalence of wholesale bypass, 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 thanks to their vertical integration. Moreover, industry companies are actively consolidating; by acquiring smaller players with innovative products, companies are able to simultaneously expand their customer base and reduce competition... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry into the Laboratory Supply Wholesaling industry are moderate. Investing in and building bigger efficient wholesaling facilities can discourage competitors from competing with incumbents. Minimum scale in the industry necessitates large capital outlays, and there are high costs associated with the construction and development of new warehousing and distribution facilities.
New entrants to this industry may have to pay more for stock, particularly given existing long-term supply contracts and relationships between existing suppliers and wholesalers. Backward integration of some major players in this industry enables them to reduce their unit costs. As such, new entrants may have to pay comparatively higher prices for products and transportation costs... purchase to read more