Across the board — and across the numerous patient applications included in the lifts, ramps and transfer device segment of the home medical equipment industry — experts point to one demographic as the force driving growth: The population is aging.
For patient lifts, which are used inside the home for lifting patients up and out of beds and wheelchairs, an aging population indicates more potential users — though the user may not always be only the person who needs lifting. As more elderly consumers opt to live in their homes, their family caregivers, who may be elderly themselves, are looking for safer ways to move and transport those who require care.
“The market is growing for [patient] lifts and slings in general,” says Fran Spidare, product manager of patient transport for Invacare. “There are more elders in our population, and more of these elders are staying at home for a longer amount of time.”
In fact, in the patient lift category, this demographic is the sole reason for growth since, Spidare says, both the products and reimbursement remain “pretty much the same” over time.
Other manufacturers also predict strong growth for patient lifts. According to Gary Nowitz, vice president, home care, for Liko, “The entire market segment is in its infant stage and will grow at a steady rate for many years to come.”
For vehicle lifts, ramps and other transfer devices such as pool and stair lifts, a nation that is getting older means not only more users but, these days, more active users.
“With the number of senior citizens in the American population continuing to increase, we are seeing the emergence of a dynamic, independent and incredibly diverse group of older Americans who show no signs of slowing down as they mature,” says Chad Williams, president of Harmar Mobility. “This is a group that has always been independent and self-reliant, and we see strong growth potential for products designed to enable their continued freedom and independence.”
Transfer devices, especially those that transport other mobility products such as scooters, are becoming a necessity for baby boomers on-the-go. So a second, closely related reason for this sector's growth corresponds directly to growth in other mobility categories. A consumer who buys a scooter is, more than likely, also going to want a vehicle lift, ramp or both.
“In past generations an elderly person with limited mobility would have been limited to short walks with a cane,” explains Zach Schroeck of Vantage Mobility International (VMI), a manufacturer of vehicle lifts. “Today, that person can go miles on a scooter, and a scooter lift allows him or her to take the scooter along in a vehicle.”
“Baby boomers … want to stay mobile, stay on the move,” adds Cy Corgan, national sales manager, light rehab and retail mobility, Pride Mobility. “As they are looking to stay more mobile, they will need to purchase scooters, and thus arises the need for lifts.” Last year, Pride acquired Silver Star Lift, turning it into a division that manufactures a variety of interior and exterior vehicle lifts. The company will soon introduce a line of vehicle and threshold ramps.
Offer Options
As the mobility products industry continues to grow, the vehicle lift and ramp segment will follow. For providers who want to take advantage of this market and its benefits, the experts have solid advice.
First, they say, HME providers should offer as many options as possible. This applies to patient lifts, vehicle lifts and ramps. The product selection should be well-rounded, says Invacare's Spidare. Whether the provider is going into a home or having customers come to a storefront, the company that provides patient lifts should be offering the whole product gamut, she says.
“As the demand [for patient transport products] continues to grow — not only in the number of people staying at home, but in the higher acuity of people staying at home — and these products become more in demand, if a dealer has that many more products and services to offer, it makes [the dealer] that much more attractive.”
In the case of ramps, “the one-style-fits-all manufacturing is changing to offer more choices to the consumer,” says Judson Branch, national sales manager of EZ-Access, a division of Homecare Products that manufactures ramps. “Instead of just having one type of ramp per style, we are developing multiple ramps per style to give end-users a choice in the type of ramp they are purchasing.”
Manufacturers also point out that consumers who are well-educated about their options want to see those options on display; subsequently, well-educated providers are beginning to consider lifts an important complement to their existing product lines.
Harmar's Williams says the consumer base for these products is shifting to include caregivers who make the buying decision and the actual end-users who decide what options will help to keep them active. “They are looking for more options in lift and ramp products as well as products that can grow and evolve with their changing needs,” he explains.
“Part of the growth in the market can be attributed to providers' efforts to increase consumer awareness of using lifts to transport mobility products,” Corgan of Pride says. “We see providers selling the complete mobility solution. When a person comes in to purchase a scooter, the provider has a complete product line — lifts and ramps — to support it.”
Moreover, these manufacturers say, it's not enough to offer the product — providers need to show it off to potential customers. “It's important to dedicate floor space to a demonstration unit,” says Pride's Doug Curtis, national sales manager, vehicle lifts.
Ultimately, choice allows providers to appeal to the “core needs” of the end-user, as Branch explains. “Options and upgrades to a mobility product or accessory in many cases are not necessary when a basic economical product is needed,” he says. “Some consumers, however, need or desire the additional features and are willing to spend the extra money to fulfill a particular need.”
This leads to the experts' second piece of advice: Look for the cash sale. The same aging customers who are driving the market for lifts also are willing to pay cash for what they want or need — and many have the disposable income to do so.
“The Baby Boomers are used to being independent and, without a doubt, will spend a lot of money to remain that way. Their desire to remain active is so strong that this group will go to great lengths to keep up with today's accessibility technology,” says Liko's Nowitz.
“Within the industry, the macro trend that providers are looking at is retail, transitioning from [relying on] full reimbursement from Medicare to products that sell for cash,” Curtis adds. “The micro trend is, as a provider completes a sale for a cash scooter, [a lift is] another possible product the provider can offer to complete the transaction.”
Caregiver comfort and safety can also “lift” sales.
“The reimbursement scenario is precarious, especially with lifts and slings, because a lot of [payers] will only pay for a basic hydraulic lift; any battery-operated lift is considered a luxury,” Spidare explains. “However, this is not a luxury in many cases. For instance, an elderly couple staying at home, one taking care of the other, would need the battery-powered lift, but many [state and private payers] won't pay the difference.”
According to Spidare, there are two groups of consumers: those who are willing to pay the difference between a hydraulic lift and a battery-operated one and who think the price difference is not that great — and those who are not. “Why not offer [both kinds of lifts],” Spidare asks? “A great number of people are willing to pay, [so] don't ignore that segment.”
“In an age of Medicare cutbacks and reimbursement unease, lift and ramp products continue to be the ultimate cash sale, paid up front with very lucrative profit margins,” notes Harmar's Williams. “Current dealers report that they sell a lift with every three to five powered mobility vehicles, and ramps are even more prevalent.”
Embrace New Technology
Next, don't be afraid of the technology.
In the past, HME providers have been wary of offering products that require extensive installation. But patient lifts are gaining popularity as a clinical necessity — allowing patients at risk for pressure sores and other ailments to change position and keeping caregivers free from injury — and, as Spidare explains, with battery power a more common option, easier for providers to install and explain to end-users.
Older technology in some vehicle lifts, however, has meant providers needed expensive resources, such as shops for welding parts and expert technicians, to install them. Today, that has changed.
“Providers no longer have to be fearful of the category,” says Corgan, explaining that newer vehicle lift technology often does not involve installation. Lifts that operate using battery-pack technology, for example, are easy to attach and operate, opening up the market for providers who don't have installation shops, Corgan says.
Manufacturers as a Resource
Finally, work with manufacturers. Lift and ramp vendors can supply everything from product literature to a readily available knowledge base, says Pride's Curtis, often offering training to help providers get into this category.
According to Williams, “The real secret to success comes in the ability to prescribe the right mobility solution for every client and to install it properly.” Most providers, he continues, already have the tools and staff in place to succeed in lift and ramp sales. “It really becomes a matter of receiving the additional training on how to recommend, sell and install the equipment,” he says.
Manufacturers also have the resources — contacts and facilities — to handle some of the hard work for providers, including engineers and other staff dedicated to tracking automobile trends.
“Being a lift company takes a lot of research into vehicles and mobility devices,” Curtis says. “Every year car companies come out with new vehicles, [so] lift manufacturers make a significant investment into research into which lift will fit which vehicles.”
Relationships between lift makers and automobile manufacturers also help in designing lifts for use with specific automobiles.
“As different vehicles come out, you have to make different mounting systems for them,” points out Jim Ernst, vice president, product development, for Leisure-Lift. “You have to keep up with the times.”
Another resource some manufacturers offer is customization. Ernst says in working with providers, the company frequently designs lifts for individual needs.
But manufacturers in this segment say they need the support of HME providers, especially if providers wish to offer their customers innovative options.
“The cost of developing and marketing new products is high, [and] it is difficult for a manufacturer to be innovative when the support of the market is easily lured away by a ‘cheap knock-off,’” contends Branch of EZ-Access. Without this support, he says, manufacturers “will not invest in the costs required for innovation and market development.”
Overall, the experts say, the lift, ramp and transfer device market — and the many products and user applications it encompasses — will reward providers. Along with the obvious benefit of enabling people with disabilities to be more mobile, it's just “good business,” concludes VMI's Schroeck.
“In a time when many industries are experiencing slowdowns, the mobility industry continues to grow. It is extremely rewarding to be in a business that helps people and creates economic growth as well.”
Experts Interviewed
Judson Branch, national sales manager, EZ-Access, a division of Homecare Products, Auburn, Wash.; Cy Corgan, national sales manager, light rehab and retail mobility, and Doug Curtis, national sales manager, vehicle lifts, Pride Mobility Products, Exeter, Pa.; Jim Ernst, vice president, product development, Leisure-Lift, Kansas City, Kan.; Gary Nowitz, vice president, home care, Liko, Franklin, Mass.; Zach Schroeck, VMI/Vantage Mobility International, Phoenix; Fran Spidare, product manager, patient transport, Invacare, Elyria, Ohio; Chad Williams, president, Harmar Mobility, Sarasota, Fla.
