Companies in this industry distribute professional medical equipment, instruments, and supplies to physicians, hospitals, and extended care facilities. Major companies include Henry Schein, McKesson Medical-Surgical, Owens & Minor, and Patterson Companies (all based in the US), along with OneMed (Sweden), Yamashita Medical Instruments (Japan), and EBOS Group (Australia).
Demand depends on the number of people receiving medical treatment and advances in medical technology. The profitability of individual companies depends on merchandising and efficient delivery systems. Large companies have economies of scale in purchasing, as well as highly developed infrastructure that allow for efficient distribution. Small companies can compete effectively by specializing in a product line or by serving a local market. The US industry is concentrated: the top 50 companies account for about 75% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include medical and surgical instruments and equipment (about 55% of revenue); supplies (about 25%); and orthopedic and prosthetic appliances (10%). Other products include dental, veterinary, and laboratory equipment and supplies. Some companies carry more than 250,000 stock-keeping units (SKUs), while others specialize in niche markets and may carry only a few different items to serve a local market’s specific needs.