Industry Analysis & Industry Trends
Back on track
Because the industry sells what is generally a discretionary good, the recession caused revenue declines in 2008 and 2009, but the industry has recovered well. An aging population and the public's increasing concern over health issues has brought revenue growth back into the positive, and will continue to do so through 2017. However, FDA regulations and the Healthcare Reform Act of 2010 could hamper future industry growth.... purchase to read more
Industry Report - Industry Investment Chapter
The low number of employees reflects the high capital intensity of this manufacturing industry, which does not depend on high levels of labor in the actual production process. Instead, workers are involved more in research and development, marketing and administrative duties. The company spends about 51 cents on capital for every dollar spent on labor. Capital costs, which include purchases or maintenance of machinery used in the manufacturing process, are relatively high because the production process is highly mechanized. In the next five years capital intensity is expected to remain constant. Companies are expected to spend slightly more on labor in the next five years in order to hire more workers for research and development. The... purchase to read more