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Increasing Importance of Product Quality to Fuel Demand for Calibration Services in North America


News provided by

Frost & Sullivan

22 Aug, 2012, 11:45 GMT

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- Stricter compliance environment and fierce competition across industries drive calibration services revenue to $1.374 billion in 2018

MOUNTAIN VIEW, California, Aug. 22, 2012 /PRNewswire/ -- The future looks bright for calibration services in North America, as harsher rules and regulations paired with increased rivalry across industries are driving the focus on product quality and productivity. However, the following components are critical for market participants to alleviate the impact of price pressure and the uncertainty in the economy on their business: tapping into the in-house laboratories segment, capturing the demand for greater and global capabilities, as well as focusing on growing end-user industries.

Click here to view the North American Calibration Services Market video and gain access to the online community- http://bit.ly/QXztLV. 

New analysis from Frost & Sullivan (http://www.testandmeasurement.frost.com) finds that the North American calibration services market earned revenues of $948.2 million in 2011 and estimates this to reach $1.374 billion in 2018.

If you are interested in more information on this research, please send an email to Jeannette Garcia, Corporate Communications, at jeannette.garcia@frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

Significant merger and acquisition (M&A) activity has reduced the number of key participants in the market in the past few years, nonetheless the calibration services market remains very fragmented. Competition remains intense with hundreds of companies in the market, including a multitude of local, niche enterprises exerting great price pressure on larger service providers. Their existence is being sustained by a lack of purchasers' understanding of calibration and its benefits among customers.

"Market growth could be accelerated if customers were more aware of calibration and its benefits," said Frost & Sullivan Industry Director Jessy Cavazos. "Customer education remains a key challenge for market participants, especially when the personnel in charge of purchasing the services are not the actual end-users of the service. They do not understand calibration and its value and mainly base their decision on price, allowing room for companies to compromise quality of service in order to provide lower prices."

Acquisitions and partnerships will be effective means for market participants to meet customer demand for greater capabilities and global reach in the foreseeable future. In addition, increasing awareness about calibration and educating customers about its benefits will be essential to bolster the growth of the calibration services market over time. With the economy facing new headwinds, tapping into the large in-house laboratories segment of the market, focusing on growing end-user industries like medical and energy, and gaining share from competition will be critical for survival.

"Over 40 percent of the market revenue is contributed by in-house laboratories," noted Cavazos. "OEMs and third-party calibration service providers can tap into this market segment to boost their future growth. For example, the life sciences industry has a large number of in-house laboratories that have the potential to be outsourced. While in the aerospace and defense sector, the trend toward lower spending is expected to put a strain on resources, likely resulting in the outsourcing of calibration work performed in-house."

North American Calibration Services Market is part of the Measurement & Instrumentation Growth Partnership Services program, which provides global Mega Trends, information on emerging markets and the latest technology innovations, market, economic, customer, competitive, and best practices research. This CEO 360 degree perspective will enable your company to effectively plan your strategies for growth. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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North American Calibration Services Market

N93F-30

Contact:

Jeannette Garcia
Corporate Communications – North America
P: +1-210-477-8427
E: jeannette.garcia@frost.com  

www.frost.com

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