WWW.IBISWORLD.COM
Medical Couriers
August 2014
Daniel Carusotto
16 International Trade
28 Key Statistics
Industry Definition
17 Business Locations
28 Industry Data
Main Activities
Similar Industries
19 Competitive Landscape
Additional Resources
28 Annual Change
3 Industry at a Glance
28 Key Ratios
4 Industry Performance
22 Barriers to Entry
Executive Summary
22 Industry Globalization
Current Performance
Industry Outlook
23 Major Companies
24 Operating Conditions
24 Capital Intensity
13 Supply Chain
26 Revenue Volatility
15 Demand Determinants
27 Industry Assistance
15 Major Markets
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Main Activities
Similar Industries
Additional Resources
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Industry at a Glance
Medical Couriers in 2014
Key Statistics
Snapshot
Revenue
1.5%
Profit
Wages
Businesses
$3.8bn
3.1%
$308.7m $921.6m 7,463
Number of physician visits
% change
There are no
Major Players in
this industry
10
15
10
% change
Market Share
10
Year 06
08
10
12
Revenue
14
16
18
20
Year
08
10
12
14
16
18
20
Employment
SOURCE: WWW.IBISWORLD.COM
p. 23
3.7%
21.2%
Medical equipment
warehousing and delivery
45.3%
Laboratory and
specimen delivery
29.8%
p. 4
Industry Structure
SOURCE:
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SOURCE:
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Growth
Low
Medium
Regulation Level
Medium
Technology Change
Medium
Barriers to Entry
Low
Industry Assistance
Low
Industry Globalization
Low
Concentration Level
Low
Competition Level
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 28
Medium
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Industry Performance
Technological
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Industry Performance
10
% change
% change
5
0
5
Year
5
4
08
10
12
14
16
18
20
Year
08
10
12
14
16
18
20
SOURCE: WWW.IBISWORLD.COM
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Industry Performance
Regulation makes
specialized couriers
more valuable
Industry revenue
6
4
% change
Current
Performance
2
0
2
Year 06
08
10
12
14
16
18
20
SOURCE: WWW.IBISWORLD.COM
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Industry Performance
Regulation makes
specialized couriers
more valuable
continued
Facing
drops in demand,
general couriers have
started to provide medical
courier services
excursions may multiply costs by
millions of dollars. Consequently, the
outsourcing of courier processes to
specialist firms grows more appealing
as regulation standards increase. In the
meantime, the technology that industry
operators use to monitor, record and
report transportation conditions is
advancing rapidly. Due to the value that
medical couriers provide, along with
increased demand, industry profit
margins have expanded over the
five-year period.
Technological developments and rising
regulatory standards have been leading
to a need for more skilled and trained
labor in the industry. Employees and
independent contractors need to learn
the applicable regulations (e.g.
Occupational Safety and Health
Administration and Health Insurance
Portability and Accountability Act rules)
and keep abreast of changes in the laws
that affect medical courier companies. In
the five years to 2014, IBISWorld expects
annualized employment growth of 1.7%
to 30,368.
The biotechnology sector is a large
user of CRT shipping due to the sensitive
nature of the sectors products. According
to the Journal of Pharmaceutical and
Biopharmaceutical Contract Services cold
chain biopharma products are projected
to grow over 27.0% between 2008 and
2011 (latest available data). Growth in
this segment has increased the number of
Medical Couriers industry entrants. As a
result, IBISWorld estimates that industry
establishments will increase at an
annualized rate of 2.4% to 9,899 over the
five years to 2014.
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Industry Performance
Competition
Industry
Outlook
As
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Industry Performance
Technological
advances lead to
further globalization
and strong demand
Increased
competition
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Industry Performance
Increased
competition
continued
Technological
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Industry Performance
The value that the industry adds to the overall
economy is forecast to grow faster than US GDP
20
Maturity
Quality Growth
Company
consolidation;
level of economic
importance stable
15
10
Quantity Growth
Specialty Hospitals
Laboratory Testing Services
0
Medical Couriers
Decline
-5
Shrinking economic
importance
-10
-10
-5
10
15
20
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Industry Performance
industry
is G
rowing
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Supply Chain
62111a
62211
Hospitals in the US
Hospitals use medical couriers to transport medical supplies, samples and organs.
62231
33341
33641a
44719
WWW.IBISWORLD.COM
3.7%
21.2%
Medical equipment
warehousing and delivery
45.3%
Laboratory and
specimen delivery
29.8%
Total $3.8bn
SOURCE: WWW.IBISWORLD.COM
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Demand
Determinants
Major Markets
16.8%
Other
48.7%
34.5%
Commercial clients
Total $3.8bn
Managed Care Organizations
Managed care organizations are
expected to account for 48.7% of
SOURCE: WWW.IBISWORLD.COM
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Major Markets
continued
International Trade
Commercial Clients
Commercial clients are the Medical
Couriers industrys second largest
market and in 2014, are expected to
account for 34.5% of industry revenue.
Commercial clients are comprised of a
wide range of customers and include
businesses performing drug screening
on their employees, biopharmaceutical
companies requiring samples to be
transported, pharmacies and dental
labs. Pharmacies are large clients of
medical couriers and require industry
Other
Other markets consist of blood banks,
public health departments, imaging
centers, and private patients among
other customers. In 2014, IBISWorld
expects other customer market segments
to account for 16.8% of industry
revenue. Blood banks tend to be a large
customer of the Medical Couriers
industry and rely on industry
establishments to transport blood from
blood banks to hospitals for routine
scheduled restock. Industry firms also
provide cross-match services, which
include delivering specific patient blood
samples to a blood bank in an effort to
find a similar match.
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West
New
England
AK
0.5
Great
Lakes
WA
ND
MT
2.2
Rocky
Mountains
ID
OR
1.6
West NV
0.9
1.7
SD
0.5
WY
0.8
MN
0.4
0.7
Plains
CO
1.1
KY
1.0
OK
0.9
NC
3.0
TN
AZ
NM
2.1
0.9
Southwest
TX
7.6
HI
0.4
2 NH
3 MA
4 RI
5 CT
6 NJ
7 DE
8 MD
0.2
1.0
0.5
3.0
1.9
0.4
SC
Southeast
1.1
MS
AL
1.4
1.3
GA
3.0
0.9
LA
1.3
FL
6.5
Establishments (%)
0.2
1.4
AR
0.7
4.2
10.9
WV VA
2.5
1.6
1.8
CA
West
2.9
MO
KS
2.1
OH
1.9
3.2
3.7
IN
IL
0.8
UT
PA
2.8
1.1
0.6
1 2
3
NY
6.5
5 4
MI
1.8
IA
NE
0.4
WI
ME
MidAtlantic
9 DC
0.2
Less than 3%
3% to less than 10%
10% to less than 20%
20% or more
SOURCE: WWW.IBISWORLD.COM
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West
The West region is home to 16.5% of
industry establishments while
accounting for 17.1% of revenue. This
region houses California which
accounts for more industry
establishments than any state (10.9%).
This region is popular due to its densely
populated areas, which are flooded with
doctors and hospitals. According to
American Hospital Directory, California
has more hospitals than any other state
30
20
10
Southwest
Southeast
Rocky Mountains
Plains
New England
Mid-Atlantic
0
Great Lakes
Southwest
The Southeast region is home to 27.2% of
industry establishments while accounting
for 25.4% of the overall population. This
region houses Florida, which accounts for
6.5% of industry establishments. The
Southwest region is a popular location for
smaller couriers as a result of the elderly
population who typically are frequent
visitors of doctors. The more a patient
goes to a doctor the more likely tests such
as blood work are performed, requiring
medical courier services.
West
Business Locations
Establishments
Population
SOURCE: WWW.IBISWORLD.COM
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19
Competitive Landscape
in
this industry is L ow
identifies
250 Key Success
Factors for a
business. The most
important for this
industry are:
Cost Structure
Benchmarks
Profit
The industrys profit margin is expected to
account for 8.2% of industry revenue in
2014, up slightly from 6.0% in 2009. Even
though the US economy experienced a
severe recession, the healthcare industry
was somewhat shielded benefiting
industry operators. From 2008 to 2009,
total health expenditure increased by 3.7%
despite GDP contracting by 2.8%,
effectively benefiting industry
participants. Despite solid demand over
the five-year period, profit margins have
only expanded slightly, as robust margin
expansion has been kept in check by rising
fuel costs and increased competition both
internally and externally.
Wages
The industry relies on labor to pick up
and drop off medical supplies, lab
samples and organs, as a result wages
represent a significant expense in an
establishments cost structure. According
to IBISWorld estimates, in 2014, wages
will account for 26.4% of industry
revenue. The business model for the
industry is particularly dependent on
independent contractors, which are used
in addition to dedicated employee
resources. Medical couriers follow an
on-demand, often unscheduled delivery
model. This model requires a varying
number of courier drivers on any given
day and time to complete a set service.
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20
Competitive Landscape
100
Average Costs of
all Industries in
sector (2014)
Industry Costs
(2014)
8.5
8.2
Profit
Wages
Purchases
Depreciation
Marketing
Rent & Utilities
Other
24.5
80
Percentage of revenue
Cost Structure
Benchmarks
continued
43.4
60
40
20
24.0
3.5
6.2
17.9
2.9
6.1
19.0
2.5
2.3
31.1
0
SOURCE: WWW.IBISWORLD.COM
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21
Competitive Landscape
Cost Structure
Benchmarks
continued
Basis of Competition
Level & Trend
ompetition
C
in
this industry is
Mediumand the
trend is I ncreasing
Internal competition
The Medical Couriers industry has a
medium level of internal competition.
Medical couriers compete on the basis of
price, quality of service, number of
available shipping options and
transportation range. Large players in
the industry are able to gain an
advantage from economies of scale,
meaning they can lower variable costs by
offering services domestically and
internationally. For example, World
Courier is able to offer lower prices on
all of their products because they make
more deliveries than most other industry
players. On the other hand, small-sized
medical couriers typically take
advantage of regional knowledge and
relationships to build their businesses
around a specific group of clients.
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22
Competitive Landscape
Basis of Competition
continued
Barriers to Entry
Industry
Globalization
Level & Trend
lobalization
G
in
this industry is
Lowand the trend
is I ncreasing
Level
Medium
Low
Growth
Medium
Medium
Medium
Low
SOURCE: WWW.IBISWORLD.COM
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Major Companies
There are no Major Players in this industry | Other
Other Companies
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Operating Conditions
of capital
intensity is M
edium
Capital intensity
Economy
Information, Communications,
Mining, Finance and Real
Estate. To increase revenue
firms need superior debt
management, a stable
macroeconomic environment
and a sound investment plan.
Capital Intensive
Labor Intensive
Couriers &
Local
Delivery
Services
Medical Couriers
Old Economy
SOURCE: WWW.IBISWORLD.COM
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Operating Conditions
Capital Intensity
continued
Technology
& Systems
Level
The level
of
Technology Change
is M
edium
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Operating Conditions
Level
The level
of
Volatility is L ow
Volatility vs Growth
1000
Revenue Volatility
Hazardous
Rollercoaster
100
10
Medical Couriers
1
0.1
Stagnant
30
10
Blue Chip
10
30
50
70
Regulation is
Mediumand the
trend is S
teady
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Operating Conditions
Industry Assistance
Industry Assistance
is L owand the
trend is S
teady
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Key Statistics
Industry Data
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Revenue
($m)
3,453.8
3,409.6
3,359.7
3,448.6
3,489.4
3,503.3
3,608.8
3,620.4
3,602.3
3,765.2
3,938.1
4,089.9
4,202.1
4,298.3
4,386.2
Annual Change
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Revenue
(%)
-1.3
-1.5
2.6
1.2
0.4
3.0
0.3
-0.5
4.5
4.6
3.9
2.7
2.3
2.0
Industry
Value Added
($m)
947.1
936.4
949.9
1,019.3
1,160.6
1,172.4
1,149.7
1,176.6
1,247.0
1,362.2
1,389.2
1,475.4
1,536.3
1,594.6
1,632.0
Establishments
8,542
8,956
9,811
9,471
8,803
8,595
8,889
9,380
9,594
9,899
10,253
10,560
10,865
11,126
11,416
Enterprises Employment
6,789
27,816
7,144
29,395
7,846
30,010
7,368
30,311
6,844
27,937
6,796
26,547
6,977
27,559
7,147
28,586
7,241
29,325
7,463
30,368
7,722
31,343
7,947
32,341
8,176
33,013
8,372
33,731
8,593
34,292
Exports
----------------
Industry
Value Added
(%)
-1.1
1.4
7.3
13.9
1.0
-1.9
2.3
6.0
9.2
2.0
6.2
4.1
3.8
2.3
Establishments
(%)
4.8
9.5
-3.5
-7.1
-2.4
3.4
5.5
2.3
3.2
3.6
3.0
2.9
2.4
2.6
Enterprises Employment
(%)
(%)
5.2
5.7
9.8
2.1
-6.1
1.0
-7.1
-7.8
-0.7
-5.0
2.7
3.8
2.4
3.7
1.3
2.6
3.1
3.6
3.5
3.2
2.9
3.2
2.9
2.1
2.4
2.2
2.6
1.7
Exports
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Key Ratios
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
IVA/Revenue
(%)
27.42
27.46
28.27
29.56
33.26
33.47
31.86
32.50
34.62
36.18
35.28
36.07
36.56
37.10
37.21
Imports/
Demand
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Exports/
Revenue
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Revenue per
Employee
($000)
124.17
115.99
111.95
113.77
124.90
131.97
130.95
126.65
122.84
123.99
125.65
126.46
127.29
127.43
127.91
Wages/Revenue
(%)
18.72
18.76
19.57
21.67
23.04
22.91
21.31
22.16
23.45
24.48
23.57
24.27
24.56
24.90
25.01
Imports
----------------
Wages
($m)
646.6
639.8
657.5
747.3
804.1
802.6
769.2
802.2
844.9
921.6
928.4
992.8
1,032.0
1,070.3
1,096.8
Domestic
Demand
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Imports
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Wages
(%)
-1.1
2.8
13.7
7.6
-0.2
-4.2
4.3
5.3
9.1
0.7
6.9
3.9
3.7
2.5
Domestic
Demand
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Employees
per Est.
3.26
3.28
3.06
3.20
3.17
3.09
3.10
3.05
3.06
3.07
3.06
3.06
3.04
3.03
3.00
Average Wage
($)
23,245.61
21,765.61
21,909.36
24,654.42
28,782.62
30,233.17
27,911.03
28,062.69
28,811.59
30,347.73
29,620.65
30,697.88
31,260.41
31,730.46
31,984.14
Share of the
Economy
(%)
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
SOURCE: WWW.IBISWORLD.COM
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