Investment Confidence Among Laboratory Decision Makers

This Frost & Sullivan research service titled Investment Confidence Among Laboratory Decision Makers analyzes laboratory decision makers’ investment confidence in laboratory-related purchases, based on past spending trends and future financial expectations. More specifically, the research strives to assess present and future business conditions, evaluate levels of confidence in possible business scenarios, as well as research present and future budget changes. In this research, Frost & Sullivan's expert analysts thoroughly examine the following technologies: cell biology, microbiology, polymerase chain reaction, cell based assays, laboratory information management systems, and DNA microarrays.

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Market Overview

Laboratory Decision Makers Cautiously Optimistic about Funding Conditions in 2012

Surveys Show a Marginal Year-on-Year Increase in the Number of Decision Makers that Expect the Current Q4 to be Better than the Previous Q4

The laboratory industry rode a roller coaster in 2011, with the economic recovery and the residual dollars of the 2009 American Recovery and Reinvestment Act (ARRA) funding. By 2011 fourth quarter (Q4), the market began to soften with hiring freezes and deterioration of most purchasing budgets. In 2012, laboratory decision makers expect their funding conditions to either remain the same or improve marginally. They believe they will have adequate funds to maintain a proper work environment and acquire the necessary technology to achieve their research objectives. This modestly optimistic outlook is rooted in the responses of 35 percent of laboratory decision makers who believe that business conditions during Q4 2012 will be better than those in Q4 2011. This is a small yet noteworthy increase over the 31 percent who believed that business conditions in Q4 2011 were better than they were during Q4 2010. “While 42 percent believe that from Q4 2010 through Q4 2012, there will be no change to business conditions, those who believe conditions will be worse decreased from 21 percent to 15 percent,” says the analyst of this research. “Laboratory decision makers certainly do not expect 2012 to be a vast improvement over 2011; however, they do expect some changes for the better.”

The biggest budget cuts from 2010 to 2011 were in furniture, construction, and hiring, and budgets for infrastructure and staff are expected to face similar drops in 2012. The ARRA funding was channeled toward the development of multiple new laboratories; therefore, further investments in construction and infrastructure in 2012 will be unlikely. Even research budgets did not change substantially from 2010 to 2011. The most significant mean budget hikes were in the areas of commodities, supplies, and consumables, while the steepest mean budget reduction was for additional and replacement staff. “Although 2008 to 2011 were unstable for the laboratory industry, some may argue the survivors emerged leaner and more committed to progressing research and development,” notes the analyst. “Moreover, the economic turmoil served as a learning experience on staying afloat when faced with limited funding.” Given current expectations from 2012, laboratories can certainly put that education to good use.

Technologies

The following technologies are covered in this research:

• Cell Biology
• Microbiology
• Polymerase chain reaction
• Cell based assays
• Laboratory information management systems
• DNA microarrays

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