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    Medical Equipment & Supply Wholesalers Industry Profile

    Report Page Length: 10-12
    Last Quarterly Update: 3/29/2021
    SIC Codes: 5047
    NAICS Codes: 42345
    Chapters Include:
    Industry Overview Trends & Challenges Industry Forecast
    Quarterly Industry Update Call Prep Questions Website & Media Links
    Business Challenges Financial Information Glossary & Acronyms
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    Excerpt from Medical Equipment & Supply Wholesalers Industry Profile

    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 EBOS Group (Australia), OneMed (Sweden), and Yamashita Medical Instruments (Japan).

    Worldwide, major markets for medical equipment and supplies include the US, Japan, Germany, France, the UK, Italy, and China. National distributors generally participate in international markets either through their foreign subsidiaries or through joint ventures with local companies. The medical equipment wholesale industry has been consolidating; many companies are gaining footholds in overseas markets by acquiring companies in targeted international markets.

    The US medical equipment and supplies distribution industry includes about 10,300 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $230 billion.


    Pressure to control health care expenditures is intensifying price negotiations for wholesalers and prompting customers to consolidate. Many customers belong to group purchasing organizations (GPOs), which help negotiate bulk pricing. Loss of a major GPO relationship can have a significant impact on sales.

    Besides competing with peers, distributors compete with manufacturers to sell products to end users. Highly complex and expensive equipment, such as MRI machines, is sold by manufacturers' salespeople. Competition with product manufacturers and other distributors is based on price, customer service, breadth of product line, and value-added services.

    Large companies have economies of scale ...

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