Category: News
We’ve been back from Medtrade Fall for a week. Now that all of the business cards and badge scans and promises to call have been followed up on, we have had some time to reflect on the experience.
The tone around the exhibition floor seemed to be that traffic was lighter than usual. While exhibitors would gladly take quality over quantity, it’s hard not to take the changing dynamic at the show as a reflection of what is happening in the HME industry.
The general consensus from many that we talked to was that this decrease in foot traffic was a result of consolidation in the industry and cost cutting. Even though research by Freedonia Group shows that the demand for home medical equipment in the U.S. is forecast to grow 8.2 percent annually through 2018, the face of the industry is rapidly changing. With shrinking margins and competitive bidding, some providers are being forced into acquisition scenarios to avoid extinction. The consolidation in the industry means there are fewer distinct providers overall. If every company still sent the same number of representatives to walk the show floor at Medtrade, with markedly fewer companies existing in the industry, it makes sense that overall volume would be down.
But are companies even sending the same number of representatives? Cost cutting has been the name of the game for years now, and it can be expensive to send large teams to Medtrade. This means fewer reps must now do the job previously done by many. The shows aren’t just about scouting new products, they are about connecting with suppliers, networking with peers, and continuing education. With fewer people stretched so far, it’s no wonder the show floor seemed quieter than usual.
What was our key takeaway, given the decrease in foot traffic? We were pleased with the quality of our conversations and the show is a success in our minds. But it also solidified for us how important it is for companies to consider ways to increase efficiencies within their organizations.
Sending fewer people to trade shows to reduce airfare, hotel bills and expenses is an obvious place to cut. It’s a big, lump sum. But that kind of short term cost cutting can have long term repercussions due to missed opportunities. And what about the hidden inefficiencies that persist within provider companies? What about things that cost your company a few minutes here and a few dollars there, every day you are open for business? Those things can add up to be quite hefty and expensive when the cumulative effect is felt? Implementing a business process management (BPM) tool will help you identify and remove non-value-add activities that are bogging down your bottom line. BPM gives you the visibility you need to make lasting, impactful changes on the daily level. It is a sustainable solution that can bring you both short term and long term results.
Shrinking profit is a huge issue. But cost cutting isn’t the only antidote. Improving productivity and cutting waste from your operations can be equally – if not more – powerful.
Even if we missed you at Medtrade - we’d love to talk with you more about how we can help you Fire Up Your Profits by introducing you to The Power of Productivity.
Where’s Medforce? Can you spot our hanging sign?
The Medforce booth and software demo stations showcasing our new brand.
Shelly, Steve and Zack
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