Pointing the Way

Feb 1, 2001 12:00 PM, Karen Cavallo

Industry Stats Can Help Chart Your Course

EVERY YEAR AT THE Medtrade East show, HomeCare magazine conducts a survey of home medical equipment providers. We call it our Point of View Survey, and it's designed to take the pulse of the industry on everything from key competitive challenges to cost-control methods and revenue-growth predictions.

One goal of the survey is to give you a national benchmark you can use to compare your performance and expectations with those of your peers. By asking such questions year after year, we also establish trend data you can use to assess improvements in your operation compared with the industry as a whole. The results are also useful fodder in planning new business initiatives, identifying new market opportunities and preparing for new challenges facing your business.

Below are some of the statistics I found most interesting. They raise compelling ideas that can help you as you focus on your management goals for the year.

- The promise of 2001

More than 87 percent of the providers we surveyed last October expect to see an increase in revenue this year. Only 3.1 percent expect a decrease. In addition, more than 30 percent of providers expect retail sales to account for more than 20 percent of their overall revenue. Given these stats, you might want to review your 2001 goals, expand your retail space or take on that new product line you've been eye-balling.

- The top growth markets

These will come as no surprise: Respiratory products (primarily continuous positive airway pressure and bi-level devices and oxygen concentrators) were ranked No. 1, with more than 60 percent of providers predicting they will account for the biggest revenue increases of 2001. The Nos. 2-4 spots were taken by power chairs, manual wheelchairs and beds/mattresses, respectively.

Rounding out the top five is the market for sleep disorder products and services. Although not a proven market like the four ranked above it, this niche continues to garner a lot of attention because of important technological advances and the growth of the potential patient population. Indeed, more than 27 percent of providers expect to see an increase in this area with the major activity in selling therapy equipment and obtaining equipment referrals from local sleep labs.

- The rise of the Internet

Speaking of new technologies, more than half of all providers surveyed are online both at home and at work. And just what are they doing online? Far and away the most popular activity - according to 68.6 percent of respondents - is researching products. Considering that just a few years ago most providers had no Internet access at all, this marks a real sea change in business operations. Is your company keeping up with the tide?

- The importance of product quality

With all the attention providers are focusing on new markets and technologies, they are not losing sight of the most important business fundamental: product quality. In fact, they say it will remain the most important issue when they make buying decisions in 2001. And that is as it should be.

To see more Point of View Survey results, look to our January 2001 Forecast/E-Commerce tabloid. Or give me a call. Perhaps I can dig up just the information you're seeking.