Industry Analysis & Industry Trends
Favorable demographic changes will benefit the industry, with demand for wheelchairs growing as a result of a greater need among older baby boomers. While input costs will remain high, they will not shift as drastically as in the previous five-year period. Nevertheless, healthcare reform is expected to negatively affect public healthcare spending as the excise tax on wheelchairs adversely affects industry operators' revenue.... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a low level of capital intensity; for every $0.11 spent on capital, $1.00 is spent on wages. Wheelchair manufacturers produce a range of products, and not all products can be manufactured on an automated production line. Therefore, the need for hands-on work augments labor costs. Furthermore, skilled specialists are needed to research and develop medical devices, and these employees command salaries well above the manufacturing sector's average wage. Wages are expected to account for 17.2% of industry revenue in 2014.
Depreciation costs represent about 1.9% of revenue. Larger industry firms frequently acquire small firms to broaden their range of products and markets, which raises capital expenditure... purchase to read more