Business Opportunities for Suppliers of Analytical ...aamg/mtgreps/pdfbusops/lyne.pdf · LGC...

LGCLGCLGCLGC Setting standardsSetting standardsSetting standardsSetting standardsin analytical sciencein analytical sciencein analytical sciencein analytical science

Overview of AnalyticalServices Market

Peter Lyne, LGC

Business Opportunities for Suppliers of Analytical Services and Products


Market Research Summary

• Conducted by BPRI on behalf of LGC and the UK AnalyticalPartnership (UKAP)

• Mainly industrial technical directors; some government officials

• 100-150 interviews across 1998, 1999, 2002

• Key objectives:– Perceptions of analytical science– Financial trends– Outsourcing behaviour– Key associations, networks & groups– Market trends– LGC information


Research Audience – Market Sectors

2002 1999 1998Healthcare/M edical 25 26 25Pharmaceuticals/ Agrochem icals 30 18 20Chem icals/ Petroleum 30 23 24Food/ Drink/ Tobacco 31 24 24Other - 9 7W ater Utilities *** 10 - -Life sciences*** 25 - -(Life sciences majority biotechnology companies)

*** New 2002

CompanyCompanyCompanyCompanyClassificationClassificationClassificationClassification

Number of Respondents2002 1511999 1001998 100


Total

(100)

Healthcare

(26)

Pharm /Ag

(18)

Chem icals/

Petroleum

(23)

Food/

Drink/

Tobacco

(24)

Essential, addes value 26% 32% 30% 30% 15%

Essential to ensure regulatory

requirem ents 47% 38% 53% 19% 72%

Total (151)

Healthcare (25)

Pharm /Ag (30)

Chem icals/ Petroleum

(30)

Food/ Drink/

Tobacco (31)

W ater Utilities (10)

Life sciences (25)

Essential, addes value 43% 60% 30% 40% 29% 40% 64%

Essential to ensure regulatory

requirem ents 40% 20% 53% 37% 55% 50% 24%

2002

1999() weighted base

2002 Q2, Base: All respondents (151) PROM PTED

Value placed on analysis

LGCLGCLGCLGC Setting standardsSetting standardsSetting standardsSetting standardsin analytical sciencein analytical sciencein analytical sciencein analytical science2002 Q10, Base: All respondents (151) PROM PTED

48%

45%

4%

4%

60%

34%

1%

4%

57%

39%

2%

2%

2002

1999

1998

Very Good Value

Fairly Good Value

Don’t Know

Not Good/Poor Value Very Good Value:1999 2002

All 60% 48%M edical/Health 70% 56%Chemical/Pet 69% 53%Other 55% -Pharm/Ag 54%Food/Drink 48% 42%W ater Utilities - 30%Life Sciences - 44%

Perceived value of analysis


OVER NEXT THREE YEARSOVER LAST 5 YEARS

Increase 64%

Decrease11%

DK6%

Stay thesame19%

Increase 55%

Decrease9%

Stay thesame34%

2002, Q7Charts: All (151) PROM PTED

2002, Q12Charts: All (151) PROM PTED

DK2%

Change in amount spent on analysis


Change in Spend by Sector % OF SEGMENT WHERE

ANALYTICAL SPEND HASINCREASED OVER LAST 5YEARS

Healthcare 68%Pharmaceuticals 60%Chemical/ Petroleum 60%Food/Drink./Tobacco 61%Water Utilities 50%Life Science 80%

% OF % OF % OF % OF SEGMENT WHERESEGMENT WHERESEGMENT WHERESEGMENT WHEREANALYTICAL SPEND EXPECTSANALYTICAL SPEND EXPECTSANALYTICAL SPEND EXPECTSANALYTICAL SPEND EXPECTSTO INCREASETO INCREASETO INCREASETO INCREASE IN NEXT 3IN NEXT 3IN NEXT 3IN NEXT 3YEARSYEARSYEARSYEARS

Healthcare 64%

Pharmaceuticals 63%

Chemical/ Petroleum 30%

Food/Drink./Tobacco 65%

Water Utilities 30%

Life Science 64%

2002, Q7Charts: All (151) PROM PTEDSegment results indicative onlyBeware of small bases

2002, Q12Charts: All (151) PROM PTEDSegment results indicative onlyBeware of small bases


72%

66%

64%

23%21%

19%

4%

8%11%

1%5%

6%

1998

1999

2002

OVER LAST 5 YEARS

Increased Stayed thesame

Decreased Don’t know

51%51%

55%

39%

30%34%

8%

17%

9%

2% 2% 2%

NEXT THREE YEARS

IncreasedStay thesame

Decreased Don’t know

2002, Q7 Base: All respondents (151) PROM PTED 2002, Q12 Base: All respondents (151) PROM PTED

Change in amount spent on analysis


2%

6%

10%

10%

16%

27%

65%

2002 Q8, Base: All where spend has increased in last 5 years (1999 66, 2002 97) UNPROM PTED

Growth/Expansion ofcompany

Regulation/ComplianceStandards

IncreasedCosts/Inflation

Purchase NewEquipment

M ore/Better QualityControl

Other

Don’t Know

Reasons for increase in expenditure overlast 5 years


3%

1%

2%

7%

19%

25%

40%

72%

2002, Q15, Base: All where spend is expected to increase in next 1-3 years (83) UNPROM PTED

Increased growth/ increasedmarket share

Product development

In keeping pace with market

Increased in legal requirem ents/regulations

Upgrading/ buyinginstrumentation

In order to gaincompetitive advantage

Other

Don’t Know

Reasons for expected increase inexpenditure over next 3 years


Priority areas for resourcing / investment

3%

4%

4%

4%

5%

10%

11%

13%

15%

2002, Q17, Base: All respondents (151) UNPROM PTED

Regulation/legislation/com pliance

Investment in equipment/technology

Quality assurance

Accuracy/quality ofanalysis

Custom er based priorities

Price/costs/budgets

Staff/resourcing/personnel

Com petitiveness

Value for m oney/Return on investment

Response tim e

Product Development

Laboratory accreditation

Im proved efficiency/Reduced personnel

Other 13%

3%

3%

3%

3%

Other responses include:

Organic analysisM anufacturing processExpanding all the sectorsR&DProduction


Areas where Capital InvestmentAllocated/Spent

10%

40%

47%

78%

2002, Q20, Base: All respondents (151) PROM PTED

Equipment/technologyrelating to analysis

Computer software/hardware

Buildings/Labpremises

Don’t know

M ost by Chemicals/ Petroleum(93% )

Least by Healthcare (64% )

M ost by Healthcare & LifeSciences (52% )

Least by Chemicals/Petroleum (33% )

M ost by Healthcare & LifeSciences (44% )

Least by Chemicals/Petroleum & Pharmaceuticals(37% )


The increase has affected equipm ent the most (44% ),with spending on buildings and labs (10% each) after

that

Equally, the decrease has affected equipm ent (38% )

OVER LAST 5 YEARS OVER NEXT 3 YEARS

25% say the increase will affect equipm ent the most,with spending on buildings (12% ) after that

Equally, the decrease will affect equipment (22% )

2002, Q23 and Q26, Base: All respondents (151) PROM PTED

Increased47%

DK5%

Stayed thesam e 32%

Decreased16%

Increase34%

DK5%

Stay thesam e 32%

Decrease15%

Change in Capital Expenditure


Nature of Capital Investment Over PastYear

2002, Q29, Base: All respondents (151) PROMPTED

Healthcare (25)

Pharm /Ag (30)

Chem / Pet(30)

Food/ Drink/ Tobacco (31)

W ater Utilities (10)

Life sciences (25)

Upgrading existing technology 68% 43% 57% 42% 40% 40%Expanding existing technology (increasing volum e of existing technologies) 40% 33% 33% 35% 10% 44%Using existing technology for new applications 24% 43% 17% 13% 20% 40%Purchasing new technology for existing applications 36% 37% 40% 39% 60% 36%Purchasing new technology for new applications 24% 33% 27% 29% 20% 36%None of the above 12% 10% 3% 6% 10% 16%


63%

85%

70%

7%

8%

11%

30%

7%

19%

In-house O nly

All Sub-contracted/O utsourced

Som e In-house /Som e O utsourced

1998

1999

2002

2002, Q37, Base: all respondents (151) UNPROMPTED

OUTSOURCING (Partial or wholly)• 81%• 93%1998 70%

Based on respondents interviewed 2002, it wouldappear, slightly less com panies are outsourcingcompared to 1999

How analysis is conducted


4%

8%

11%

16%

34%

40%

Reasons for using in-house analysis

Q39, 2002; Base: All conducting analysis in-house (146) UNPROMPTED

M ore cost effective in-house

Speed/ turnaround of results

Quality of analysis/Quality control

Specialist knowledgerequired

Tradition

Convenience/flexibility

Also m entioned:Importance/core function 4%

Confidentiality 3%Volume 3%M aintain skills 4%Routine work 2%Utilise in-house/ equipment 3%Regulatory reasons 3%Don’t know 7%


3%

2%

4%

7%

20%

22%

25%

36%

51%

Possible reasons for consideringoutsourcing

Q40, 2002; Base: All conducting analysis in-house (134) UNPROM PTED

Expertise not available in-house

If outsourcing proved more efficient use of resource

Required access to latest technology

Internal knowledge to solve problem not available

If greater control over costs

To make funds available for business projects

Validation

Regulatory requirements

Don’t Know


11%

7%

2%

2%

4%

4%

9%

8%

19%

21%

33%

Reasons given for outsourcing decision

Q42, 2002; Base: All those outsourcing analysis (123) UNPROM PTED

Lack of investment in equipment/technology

Cheaper to outsource

Expertise not covered in-house

Adhoc/ one-off requirem ents

Quantity of work (too m uch/ too little)

Independent opinion required

Regulation/ Legislation

Staffing issues

Other

Don’t Know

It’s not our core business


10%

10%

10%

15%

16%

32%

37%

38%

Qualities looked for in analytical suppliers

Q47, 2002; Base: Those who source analysts (123) UNPROM PTED

Accreditation

Cost

Speed

Reputation

Quality Service

Expertise

Consistency

Quality control systems

Desirable qualities of analytical suppliers include accreditation, competitive costing and theability to deliver results quickly


Number of suppliers typically approached

One supplier only

Two suppliers

3 suppliers

4 suppliers

5-10 suppliers

Over 10 suppliers

Q44, 2002; Base: All those outsourcing analysis (123) UNPROM PTED

8%

20%

14%

22%

20%

15%

Average number of suppliers

Total (123) 5Healthcare (22) 7Pharmaceuticals (22) 4Chemical and Petroleum (24) 4Food/Drink/Tobacco (28) 3W ater Utilities (10) 5Life sciences (17) 4


2002, Q75, Base: All those who are members (98) PROMPTED

38%

0%

25%

27%

54%

86%

61%

90%

89%

64%

46%

14%

10%

32%

9%

18%

57%

Life sciences

W ater

Food/ Drink/ Tobacco

Chem icals/

Petroleum

Pharm aceuticals

Healthcare

Research Associations

Trade Associations

Learned Societies

Open Netw orks

Network and Association Membershipby Segment


0

1

2

3

4

5

6

7

8

9

10

0% 20% 40% 60% 80% 100%

Importance

M em bership

OPEN NETW ORKSM embership - 1%Importance - 3.31

LEARNED SOCIETIES M embership - 24%Importance - 5.55

TRADE ASSOCIATIONSM embership - 73%Importance - 5.57

RESEARCH ASSOCIATIONSM embership - 33%Importance - 5.66

Importance of networks and membership

Q73/74, 2002; Base: All (151) PROM PTED


Major issues currently facing analytical science and chemicalanalysis

Cost ofAnalysis (14)

EnvironmentalIssues (9)

Resourcing/Lack of

Trained Staff(19)

(Global)Competitiveness

(7)

NewTechnology/Improving

Technical Issues(10)

Speed of Analysis/Getting product tomarket earlier

(8)

Keeping Pacewith Change

(3)

IncreasingLegislation

(15)

Quality ofService (3)

M ainIssues

2002, Q80, Base: Asked of all respondents (151), examples given due to large number ofdifferent responses, number of respondents in brackets UNPROMPTED


Major issues facing analytical science and chemical analysis -comments

Cost ofAnalysis

EnvironmentalIssues

Resourcing/Lack of

Trained Staff

(Global)Competitiveness

IncreasingLegislation

“There’s not enough decenttraining”

“Don’t get the quality of staffrequired”

“European laws andlegislation will be increasingly

influential”

“Losing business in South EastAsia”

“Globalisation. The UK isdying and is over-bureaucratic”

“The industry coming togetherto reduce costs”

“The company is being pro-active in countering

environmental problems –BSE, Dioxins”

“It’s always going to be aboutcosts and justifying the amount

spent”

2002, Q80, Base: Asked of all respondents (151), examples given due to large number ofdifferent responses UNPROMPTED


Most significant impact on marketplace and organisation in next 10years

IncreasedRegulations (esp

Pesticides/Pharmaceutical)

(9)

Amount ofTesting toIncrease (7)

Technologyadvances(13)

M oreAutomation (6)

M arket Changes(8)Cost of

Analysis (6)

New analysismethods (5)

New Legislation(e.g. EuropeanLaw) (11)

Environment(7)

M ainIssues

2002, Q81, Base: Asked of all respondents (151), examples given due to large numbers ofdifferent responses, number of respondents in brackets UNPROMPTED


Acknowledgements

• David Burton, Mandy Kells, BPRI

• Imelda Topping, Jo Bloomfield, LGC

Business Opportunities for Suppliers of Analytical ...aamg/mtgreps/pdfbusops/lyne.pdf · LGC...

Documents

Transcript of Business Opportunities for Suppliers of Analytical ...aamg/mtgreps/pdfbusops/lyne.pdf · LGC...