Industry Analysis & Industry Trends
In 2014 the Medical Supplies Manufacturing industry in China is expected to generate $27.5 billion. This represents an increase of 17.5% from 2013 and average annualized growth of 23.6% over the past five years. Profit as share of total industry revenue is expected to be 10.2% in 2014.
Products manufactured by this industry are used for medical treatment and are mainly distributed to hospitals and medical institutions. Apart from some dental and suturing materials, most medical supplies manufactured in China are low-end products using low-end technology. However, regulations such as GMP (Good Manufacturing Practice) certification are forcing manufacturers to improve product quality and manufacturing environments, which is expected to result in higher production costs.... purchase to read more
Industry Report - Starting a New Business Chapter
As this industry has a moderate level of capital intensity, start-up investment in manufacturing facilities and costs for maintenance for such facilities presents a major barrier to entry.
Economies of scale
Large existing manufacturers benefit from economies of scale, which gives them cost saving advantages and increased efficiencies. However, most manufacturers within the industry are small and medium in scale. Therefore, economies of scale are not as evident, except amongst the industry's large companies.
Distribution to demand industries, especially various kinds of hospitals and medical centers, is also key in the industry... purchase to read more