In terms of financial performance, it’s been a generally positive year for the global healthcare industry. 43% of survey respondents reported an increase in turnover from 2019 to 2020 – compared to just 28% that reported a decrease. A great majority of respondents (81%) are satisfied with the current performance of their business.
Who’s been impacted most?
Manufacturers have had the healthiest year financially, with 49% reporting an increase in turnover, 31% of manufacturers have seen an increase of more than 20%. 47% of agents, dealers and distributors also saw an increase in turnover, 25% reported an increase in turnover of more than 20%.
The story is less positive for clinics and medical practices, 45% of which reported a decrease in turnover, as well as consultancies – 54% of which saw a decrease in turnover.
This sector also had the highest proportion (24%) reporting a decrease of more than 20%.
Does size matter?
The pandemic looks to have impacted smaller businesses slightly harder than larger ones financially, although the spread across different sized businesses is fairly even.
A third of organisations with a turnover of less than US$ 5 million (33%) reported a decrease in turnover, compared to 21% of organisations with a turnover of more than US $100 million. 37% of organisations with a turnover of less than US$ 5 million reported an increase, with the highest rate of increase reported by businesses with a turnover of US $11-25 million at 52%.
Companies with a turnover of US$ 26-100 million saw the biggest increase in exports in 2020, with 26% reporting an increase of more than 20%. More companies with a turnover of US$ 26-100 million reported at least some increase in revenue (50%), compared to 44% of companies with a turnover of more than US$ 100 million.
Smaller businesses are also more likely to be unsatisfied with their current performance, with 23% of those with a turnover of less than US$ 5 million stating they were either not very or not at all satisfied.
Business beyond borders
We also asked respondents what percentage of their company’s revenue is generated outside the country in which their headquarters is located, and overall figures have reduced slightly since December 2019.
46% of businesses now generate all of their income in one country, up from 42% in 2019. For those that generate more than half their income outside of their headquartered country, figures stayed the same, but the number of businesses generating up to half of their income outside their own country has declined slightly since 2019.
Perhaps unsurprisingly, businesses with a larger turnover are more likely to generate more revenue outside their home country, with two-thirds (64%) of those with a turnover of more than US$ 100 million generating at least 25% of their income outside of their home country. This compares to less than half (45%) of companies with a turnover of up to US$ 5 million.
About the report
The Voice of the Healthcare Industry Market Outlook 2021 survey was designed by Informa Markets to understand the impact that the pandemic has had on four key areas of the industry: manufacturers and agents, dealers and distributors; clinics and medical practices; private hospitals and public hospitals; government and health regulators; and charities, non-profits and NGOs.
Through GRS Research & Strategy Middle East we asked 1,600 respondents worldwide about the financial and operational impact of the events brought by the pandemic.
The survey also looked to assess how the industry has responded to the pandemic, and how key players have evolved their business strategy. We also asked participants to reflect on how the future will look, and what key trends they are now anticipating.
