Market & Customer Insight (MCi) Ltd

	Press Release: UK Occupational Health Market Development Report
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Released: March 2012
Published by Market & Customer Insight (MCi)

After researching the UK occupational health market development and taking into account various other factors the following conclusions can be drawn from this MBD report:

Market Review 2007-2011:

In 2011 the UK market for occupational health provision is believed to have declined by 3%, continuing the decline already evident in 2010. The market is now estimated at £385 million, and the market appears to have plateaued. MCi believe this is partly the effect of the recession and partly a factor that the previous growth of the market was largely targeted at the very large companies, the public sector, and those industries with perceivable potential issues (eg handling hazardous goods), and that the large element of the market with no occupational provision is now proving much more difficult to address. Yet the recession should not be affecting the market in this way, employment uncertainty, increased roles for those that remain, and the change in those roles are all contributing to one of the major factors in workplace absenteeism, namely stress. Moreover, the situation is further complicated by levels of presenteeism. MCi believe that the premature market maturity owes more to the intense price competition among suppliers to the already penetrated large companies and public sector organisations, rather than the very necessary, but more difficult and more cost ineffective, move to the wider SME market.

An estimated 53% of UK occupational health services were outsourced to private companies in 2011. Nonetheless the market is currently in decline, and the evidence from the major suppliers is that they are all struggling to gain profits as the market competition intensifies combined with the requirements of investment in technology. That technological investment, combined with the extensive on-line capabilities of much of the UK population may form the key to the wider development of the occupational sector to the smaller companies. The NHS pilot scheme of the OH Advice Lines has indicated a need amongst SMEs, but there is a need for significant corporate education into the economic benefits of investment in occupational health at this level.

Market Forecast 2012-2016:

Many healthcare analysts have long forecast the growth of the occupational health market and its potential is widely agreed. What the market has lacked is the stimulus to gain an initial growth in demand. What the recession appears to have introduced is a temporary ceiling on the market development

There appears to have been a major cost impact on outsourced occupational health provision from the recession and subsequent weak recovery. Yet this has occurred at a time when one of the key work absence factors has intensified, namely stress. In practice those organisations using occupational health have come under intense cost pressure, in the public sector bodies through government restrictions on expenditure, and in the private sector through profitability issues. Consequently the market has declined in recent years and the recovery can be expected to be slow and sporadic.

Against this there is very real growth opportunity in the sector, with vast areas of the working population remaining uncovered by occupational health. Nonetheless, part of the reason for the lack of market growth in 2010 and 2011 has been that the largest employers and public bodies (ie the easily identified and targeted operations) have already been covered and are now in a situation of increasing the competition to gain the contract, forcing margins down in the sector.

Note to Editors:

MCi specialises in business to business market research. The range of reports and industries in which we operate in is constantly expanding (our portfolio comprises of more that 140 titles). All our reports are written by in-house market consultants.

Click here for full details of the UK Occupational Health Market Research Report

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