Laboratory decision makers optimistic on funding conditions

Source：Frost & Sullivan Release Date：2012-08-20 238

Medical Equipment

SINGAPORE – Laboratory decision makers expect their funding conditions to remain the same or improve marginally in 2012, according to a new study.

Frost & Sullivan’s “Investment Confidence among Laboratory Decision Makers” research finds that the participants’ modestly optimistic outlook is rooted in the responses of 35% of laboratory decision makers who believe that business conditions during Q4 2012 will be better than those in Q4 2011. This is an increase over the 31% who believed that business conditions in Q4 2011 were better than they were during Q4 2010.

According to Frost & Sullivan research analyst Karolina Olszewska, 42% believe that there will be no change to business conditions from Q4 2010 through Q4 2012. However, those who believe conditions will be worse decreased from 21% to 15% in the same period.

The biggest budget cuts from 2010 to 2011 were in furniture, construction and hiring. Similar budget cuts are expected in 2012 for infrastructure and staff. The 2009 American Recovery and Reinvestment Act (ARRA) funding was channelled toward the development of multiple new laboratories, making further investments in construction and infrastructure in 2012 unlikely. Research budgets from 2010 to 2011 have not changed substantially.

The most significant mean budget hikes were in the areas of commodities, supplies and consumables, while the steepest mean budget reduction was for additional and replacement staff.

"Although 2008 to 2011 were unstable for the laboratory industry, some may argue the survivors emerged leaner and more committed to progressing R&D," said Ms Olszewska. "Moreover, the economic turmoil served as a learning experience on staying afloat when faced with limited funding. Given current expectations from 2012, laboratories can certainly put that education to good use."

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