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          1. Testing Laboratories Industry Profile

            Report Page Length: 10-12
            Last Quarterly Update: 9/7/2020
            SIC Codes: 8734
            NAICS Codes: 541380
            Chapters Include:
            Industry Overview Trends & Challenges Industry Forecast
            Quarterly Industry Update Call Prep Questions Website & Media Links
            Business Challenges Financial Information Glossary & Acronyms
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            Excerpt from Testing Laboratories Industry Profile

            Companies in this industry provide engineering, quality control, and certification services in a variety of industries. Major companies include NTS, Exponent, and Underwriters Laboratories (all based in the US), along with ALS (Australia), Bureau Veritas (France), DEKRA (Germany), Intertek (UK), and SGS (Switzerland).

            Entities such as the International Organization for Standardization (ISO) and varying country-specific standards create global demand for testing laboratories, as manufacturers try to meet these standards to compete in multiple markets.

            The US testing laboratories industry includes about 7,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $18 billion. This industry doesn't include medical, veterinary, or pharmaceutical testing.

            COMPETITIVE LANDSCAPE

            Demand is driven largely by industry and government spending on R&D to improve the efficiency of operations and develop new products and services. The profitability of individual companies depends on technical expertise and the ability to accurately predict project costs. Large labs have advantages in providing a broader range of services through multiple locations; some have strategic partnerships with major corporations. Small labs compete effectively by specializing in particular types of service. The US industry is fragmented: the top 50 companies account for about 40% of industry revenue.

            PRODUCTS, OPERATIONS & TECHNOLOGY

            Services include chemical, nondestructive, mechanical, and electrical testing as well as calibration testing, thermal testing, and assaying. Companies build facilities to simulate various environments according to temperature, altitude, humidity, sunshine, dust, or explosive atmosphere. Items tested include ...

             
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