What is Up with X-Ray 2017

Market Conditions & Changes

 

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The year 2017 begins with many changes affecting the X-Ray Business


.........Following previous years major news and mergers affecting the Radiographic Business, the last few years are to remember -- and ponder the ramifications?



Major News announcements:


December 26, 2015     Medical Device Excise Tax (MDET) which was brought to our industry as all medical devices, has officially been suspended for 2-years.  This tax has been especially burdensome on small device manufacturers.  A potential permanent repeal will depend largely on who is elected president in 2016.   Remember, this tax has been called “The Dumbest Levy of All Time”.  Although this was a tax on manufacturers.  Did you know the end users and ultimately patients were paying this tax?




December 20th, 2015 Toshiba Corp., rocked with one of Japans largest accounting scandals, intends to take a $4.5 Billion USD (Not YEN!!! -- Ouch!) charge as well as selling off a majority stake in its medical division.   Who will buy this giant?



November 2015    Many OEM’s  continue to cancel reseller agreements of independent dealers for “non-performance”, “selling competing products””not leading with OEM’s line”.  It is rumored that one OEM has cancelled no less than 40 dealers in 2015.     Is your reseller agreement safe?





Continued Mergers and Acquisitions for 2015

Konica Minolta merges with Viztek


Konica Minolta acquires Brazilian X-Ray equipment manufacturer Sawae Technologica


Sedecal (Sociedad Española de Electromedicina y Calidad, S.A.; SEDECAL) buys Summit Industries


Many Regional Dealers continue to acquire competitors and small competing service companies.   Continued pressure to sell to ever larger organizations, small and mid size dealers continue to combine forces to stay competitive.    Is your equipment & parts supplier safe and on your side?



Direct (Non-Reseller) Sales efforts by OEM’s

Continued sales efforts by OEM’s to completely bypass resellers continued in force for the year 2015.  With the emergence of tremendous sales opportunities in the Urgent Care Space, many OEM’s, in efforts to secure this business, have continued to bypass Resellers in these opportunities.  How should resellers react?


Korea and China Invade:

Just one casual walk through McCormick Hall at RSNA and one cannot deny that subsidized Korean Rad Gear and questionable quality Imports have invaded everywhere.  CoRE labs counted one Korean system being shown under no less than 10 brand names at varying booths.  Price remains an important factor but how will you support your end user with imported goods?




Reseller Madness - Margin Madness

While Some OEM’s cancel reseller agreements, others continue to sell to anyone and everyone.   The race to the bottom of margins continues in 2015 with many OEM’s saturating opportunities with as many quotes as possible.  How can this be good for the longevity of our market & the quality of systems being manufactured?