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The Market Outlook for Research Products in FY2010 Product Image

The Market Outlook for Research Products in FY2010

  • ID: 1088861
  • November 2009
  • Region: Global
  • BioInformatics, LLC

Money is starting to flow. The 8.2 billion dollars appropriated to the NIH Scientific Research program by the American Recovery and Reinvestment Act is being earmarked for lab renovations, Challenge Grants, the Shared Instrumentation Program and research that spans multiple public and non-profit institutions all of which will have an immediate and long-term impact on the life science tools industry. Unlike the tumultuous first quarter of 2009, the current climate bodes well for the life science industry, and suppliers can strategize with increased confidence as we move into a more clearly defined and better funded 2010.

Across the board, suppliers are sensing that lab purchasing agents have a better understanding of sources of funding and how monies will be spent than they did a year ago. In our upcoming report, The Market Outlook for Research Products in FY2010, we asked nearly 800 scientists detailed questions about their FY2010 budgets, planned expenditures and sources of funding. Applicable to both product development and marketing, this report short-circuits the decision-making process by providing financial data that supports a strategy predicated on what scientists plan READ MORE >

Section 1. Key Findings and Implications

- Introduction
- Analysis of Laboratory Budgets and Projected Spending
- Overview of Funding Sources and Status of Stimulus Grants
- Experiences with Contract Research Organizations (CROs)
- Laboratory Budget Realities in Today's Economy
- Predictions for the Future of Research Funding

Section 2. Methodology & Demographics

- Objectives
- Questionnaire design
- Survey population

Section 3. Presentation of the Survey Data

- Overview of a Laboratory's Budget
- Funding Sources
- Life Science Suppliers
- Experience with Contract Research Organizations (CROs)
- Laboratory Budget Realities in Today's Economy
- Predictions for the Future of Research Funding
- Additional Analysis by

Section 4. Appendices

Section 1. Key Findings and Implications

Introduction

Analysis of Laboratory Budgets and Projected Spending
- Comparison of FY2009 and FY2010 annual laboratory research budgets in total and by 14 product categories with a focus on market segment and regional differences
- Anticipated FY2010 purchases in 6 consumable and 8 instrumentation product categories and expected change in spending for each category from FY2009 to FY2010
- Estimated proportion of a laboratory's FY2010 research budget to be spent with suppliers of instrumentation and consumables within each product category
- Leading criteria used in decision to spend a majority of a laboratory's instrumentation or consumables budget with a particular supplier

Overview of Funding Sources and Status of Stimulus Grants
- Key sources of internal and external funding that have and will support a laboratory's research/work in FY2009 and FY2010
- Incidence and status of applications for recovery act grants supported by the American Recovery & Reinvestment Act of 2009 (ARRA)
- Prevalence of laboratories receiving assistance with the preparation of ARRA grants from colleagues, suppliers, etc
- Awareness of programs designed to provide incentives for the purchase of instrumentation or consumables from a particular supplier with the use of funds from an ARRA grant

Experiences with Contract Research Organizations (CROs)
- Comparison of the proportion of FY2009 and FY2010 annual laboratory research budgets spent on expenses associated with the use of a CRO
- Frequencies with which a client can specify the supplier, instrument and/or research product used by the CRO to whom they are outsourcing research/work
- Leading services currently or expected to be outsourced to a CRO in FY2009 and FY2010

Laboratory Budget Realities in Today's Economy
- Identify practices engaged in as a result of the economic recession and the expected time frame for discontinuation of these practices
- Promotions offered to, previously used and/or currently used by scientists for the purchase of instrumentation and consumables

Predictions for the Future of Research Funding
- Expected change in a laboratory's annual research budget from FY2010 to FY2011
- Perception of when the economic recessions in the United States and Europe will end
- Confidence that the stimulus bills recently passed in the United States and European countries will benefit the life sciences in FY2010 and FY2011

Section 2. Methodology & Demographics
- Objectives
- Questionnaire design
- Survey population

Section 3. Presentation of the Survey Data

Overview of a Laboratory's Budget
- Total annual laboratory research budgets in FY2009 and FY2010
- Proportion of FY2009 and FY2010 annual laboratory research budgets allocated to each product category
- Instrumentation purchases (costing USD $5,000 or more per item)
- Laboratory equipment (costing less than USD $5,000 per item)
- Consumables (such as reagents, plasticware)
- Overhead (including salaries, travel expenses)
- Expenses associated with the use of Contract Research Organizations (CROs)
- Proportion of FY2009 and FY2010 laboratory instrumentation budgets allocated to each product category
- Cell biology instruments—Flow cytometer-based
- Cell biology instruments—Microscope-based
- High throughput screening and analysis systems
- Image analysis systems
- Instrumentation for genomic analysis
- Instrumentation for protein analysis
- Proportion of FY2009 and FY2010 laboratory consumable budgets allocated to each product category
- Cell biology kits and reagents
- Cell culture media and reagents—for bioprocessing and bioproduction only
- Cell culture media and reagents—for research only
- Gene expression analysis products
- Laboratory plasticware
- Nucleic acid purification and separation products
- Protein purification and separation products
- RNAi products
- Anticipated FY2010 purchases in consumable and instrumentation product categories
- Estimated proportion of budget to be spent with suppliers of instrumentation and consumables by product category

Funding Sources
- Sources of funding for FY2009 and FY2010
- External
- Internal
- Incidence, status and prevalence of receiving assistance with applications for ARRA grants
- Awareness of programs providing incentives to purchase products with a particular supplier using ARRA funds

Life Science Suppliers
- Proportion of a laboratory's research budget to be spent within 14 product categories by supplier
- Reasoning for spending the majority of a laboratory's research budget with a particular supplier

Experience with Contract Research Organizations (CROs)
- Frequencies with which a client can specify the supplier, instrument and/or research product used by their CRO
- Services currently or expected to be outsourced to a CRO in FY2009 and FY2010

Laboratory Budget Realities in Today's Economy
- Practices engaged in to conserve expenses and expected timeframe for discontinuation
- Cancelled instrumentation service contracts
- Decrease/stop long-term experiments
- Defer instrumentation and capital equipment purchases
- Delay/cancel nonessential purchases for the lab
- Increase energy efficiency
- Increase outsourcing to CROs
- Increase the use of core facilities
- Lease instrumentation
- Not take on new initiatives
- Participate in “reagent rental” programs
- Postpone or suspend projects/initiatives
- Postpone or suspend specific experiments
- Purchase/acquire used instrumentation
- Reduce/cease experiments with animals
- Rent instrumentation for the duration of a project
- Share instrumentation with other labs
- Share resources (other than instrumentation) with other labs
- Shift research priorities based on funding availability
- Staffing changes (including furloughs, salary cuts and/or freeze, hiring freeze, etc.)
- Promotions offered to, previously used and/or currently used by scientists for the purchase of instrumentation
- Discounted pricing
- Discounted pricing on instrumentation service contract
- Free consumables with purchase of instrument/system
- No interest grace period with financing through supplier
- Purchase an instrument and receive peripherals or software free of charge
- Trade-in program
- Promotions offered to, previously used and/or currently used by scientists for the purchase of consumables
- Bundling of products for improved pricing
- Buy one get one free offers
- Discounted pricing on commonly used products
- Free samples
- Lower prices on on-site stocking program products
- No handling/shipping fees
- Promotional items
- Reduced prices for soon-to-expire products
- Reward points good toward future purchases
- Special offers on new products

Predictions for the Future of Research Funding
- Expected change in a laboratory's annual research budget from FY2010 to FY2011
- Perception of when the economic recessions in the United States and Europe will end
- Confidence that stimulus bills recently passed will benefit the life sciences in FY2010 and FY2011

Additional Analysis by
- Years of experience
- Lab size
- Purchasing authority (consumables)
- Purchasing authority (instrumentation)
- Type of research conducted
- Product category
- Market segment
- Geographic region

Section 4. Appendices

Appendix A.
Verbatim responses to “How confident are you that the stimulus bills recently passed (within the last 12 to 24 months) in your country will benefit the life sciences in FY2010? FY2011?”

Appendix B.
Verbatim responses to “If you had to sum up the collective perspective of your lab with respect to your FY2009, FY2010 and FY2011 budgets in a statement, what would it be?”

Appendix C.
Selected verbatim responses to “If you were given the chance to buy any new instrument in FY2010 without affecting your budget, which instrument would you select and what's the one feature/technology you would most value in it?”

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