Medical Uniforms have a buyer power score of 3.7 out of 5. According to IBISWorld procurement analyst Anna Son, “This above-average score reflects a mix of favorable and hindering conditions existing in the market that have been influencing buyer negotiation power over the three years to 2014.” During the period, growing demand for medical uniforms, which are largely regarded as nondiscretionary, and increasing input costs have underpinned price growth. On the other hand, fierce market competition and rising import penetration have prevented prices from spiking. The price of medical uniforms is projected to continue trending upward over the three years to 2017. The aging population of baby boomers and the greater number of insured individuals will bolster demand for healthcare services, prompting hospitals and other healthcare facilities to restock their medical supply inventory. As a result of increasing demand for medical uniforms, prices will follow suit.
“An abundance of suppliers and low switching costs further sustain buyer power,” says Son. Despite the presence of a few notable players, such as Cardinal Health and Medline Industries, the vast majority of suppliers are small and midsize firms operating on a local or regional basis. While suppliers offer various product customization options, most medical uniforms are largely commoditized and easily comparable among suppliers. There are no direct hidden costs associated with procuring medical uniforms, making it easier for buyers to switch suppliers.
