It might have competitive and cost challenges, but the mobility market is geared up for strong growth, manufacturers say — and that makes it appealing.

According to Mountain View, Calif.-based research firm Frost & Sullivan, the power wheelchair market generated more than $160 million in revenue in 1997 and should reach more than $270 million by 2004. That's a compound annual growth rate of 7.6 percent (see sidebar). Most manufacturers are even more optimistic about this market, projecting growth at around 10 percent.

Driving at least a portion of this growth are users who are no longer sitting back and simply accepting whatever wheelchair is prescribed. They are much more educated and involved in the decision-making process, manufacturers say, and they are often choosing a power wheelchair on the basis of its looks as much as on its function.

Indeed, one of the biggest trends in the power wheelchair market is style, manufacturers say.

“The aesthetics of power chairs is probably the most dramatic development in the last couple of years, in that chairs are now looking much more acceptable to the end-users than they ever have been,” says Mark Greig, global product director for power wheelchairs at Sunrise Medical. “And that's an extremely important aspect of power wheelchairs because it's such a personal, intimate product with end-users.”

In addition to strong performance and clinical features, users want chairs that match their self-images, Greig says.

Scott Higley, national sales manager Quantum Rehab/Jazzy Power Chairs (Pride), agrees.

“The biggest challenge now is continually meeting the demands of a more educated consumer, a consumer who knows more about what they want and what they need,” he says. “People are looking at alternative types of power chairs, and that is continually expanding the market, especially into higher-end products. We want to make the power chair a more accessible product for people as far as quality and aesthetics.”

Revenue and Growth Rate Forecasts for the U.S. Power Wheelchair Market

Year	Revenue in Millions Rate	Revenue Growth
1993	$159.8	14%
1994	$128.3	—
1995	$139.9	9.0%
1996	$151.6	8.4%
1997	$164.0	8.2%
1998	$177.3	8.1%
1999	$191.3	7.9%
2000	$206.2	7.8%
2001	$221.8	7.5%
2002	$238.3	7.4%
2003	$255.7	7.3%
2004	$273.9	7.1%
Compound annual growth rate (1997-2004): 7.6%
Note: All figures are rounded. Source: Frost & Sullivan

Julie Jacono, marketing manager for custom power wheelchairs at Invacare, says another challenge is building awareness of power wheelchairs and what is available.

“The primary challenge that we have is communicating to the right rehab technology suppliers, keeping them educated and informed of changes,” she says. “Another [challenge] is getting enough equipment into the field for people to see and try, and into the right places.”

Invacare depends on a variety of sources to get the word out, Jacono says. “We're part of numerous different organizations, such as the National Registry of Rehabilitation Technology Suppliers, and we're just trying to do everything that we can to communicate in groups and to individual RTS through mailings, the Internet and our sales reps.”

Getting Out and About

GONE ARE the days when power wheelchair users would spend most of their waking hours cooped up in their homes. More and more, power chair users want to lead vital, active lives, and manufacturers must adapt their products to meet these demands.

“Users are more active than ever now,” says Julie Jacono, marketing manager for custom power wheelchairs at Invacare. “They expect to go places that five years ago they wouldn't have even asked for — from inside a small bathroom, inside an apartment, inside a mini van, to outside just about anywhere. So everyone is trying to find ways to make products less compromising, so that they're maneuverable indoors, but yet deliver speed and flexibility outdoors.”

That's prompted the manufacture of mid-wheel, front-wheel and rear-wheel power chairs, she says. “Everyone is focused on trying to find a configuration that allows the user to go the maximum number of places with the least number of compromises.”

ABN: The Unknown Quantity

ONE ELEMENT that will likely affect reimbursement for power wheelchairs is the recently released upgrade Advanced Beneficiary Notice. The ABN allows Medicare beneficiaries to upgrade home medical equipment and pay only the difference between the reimbursement for the base equipment Medicare will cover and the price of the upgraded equipment.

Manufacturers generally concur that it will benefit the power chair market, but since the guidelines have not yet been released, they are unclear how far-reaching it will be. While some say consumers might be able to upgrade from a manual to a power chair, others are not so sure.

“I don't know if consumers will be able to take that much of a step,” says Bob Smith, vice president of sales and marketing at Golden Technologies. “We're more apt to see if they want additional features on that power chair that are not covered. … I find it hard to believe that they'll enable people to move from a manual chair into a power chair.”

In Search of Lower Costs

EVERYBODY, it seems, wants a piece of the action in the power wheelchair market. And as competition continues to increase, manufacturers say that they are seeking ways to cut costs, such as by shifting some aspects of production overseas.

The products of nearly all manufacturers, says Bob Smith, vice president of sales and marketing at Golden Technologies, “are touched by the Far East, whether it's some of the technology they use or some of the frames or the plastic they use.”

The reason is simple, he says. “All manufacturers have to have a competitive product, and one of the ways that they are able to do that is to evolve some design and development from the Far East. There are very few companies that are making their products completely within the U.S. today, and primarily because of the labor. Those cost pressures are going to continue because they can build product over there quite a bit less expensively than they can here in the U.S.”

Some manufacturers believe, however, that shifting production overseas is fraught with pitfalls and will only lead to problems.

“There are prices to pay with that,” says DuWayne Kramer, president of Leisure-Lift. “You're going to see less quality and more problems with product coming from offshore. And that's going to be reflected in various issues in reliability. Pricing to the dealers may come down on initial price. But they're going to pay for it down the road because the quality and the recalls that are going to happen because of it are just going to be there. It just isn't the same standards.”

Experts Interviewed: Mark Greig, global product director for power wheelchairs, Sunrise Medical, Carlsbad, Calif.; Scott Higley, national sales manager, Quantum Rehab/Jazzy Power Chairs (Pride), Exeter, Pa.; Larry Jackson, vice president, Permobil Inc., Woburn, Mass.; Julie Jacono, marketing manager for custom power wheelchairs, Invacare, Elyria, Ohio; Phil Kelley, sales manager, Teftec, San Antonio; DuWayne Kramer, president, and Mike Wade, director of sales, Leisure-Lift, Kansas City, Kan.; Jack Sheehan, director of sales and marketing, Bruno Independent Living Aids, Oconomowoc, Wis.; and Bob Smith, vice president of sales and marketing, Golden Technologies, Old Forge, Pa.

To follow up with these companies, check out the complete listing in HomeCare's annual Buyer's Guide.