PETER RIVIERE: Australia is an extremely consolidated market. One dynamic that I see are cost pressures driving laboratories to increase operational efficiency by maximizing asset utilization. Laboratories are weighing potential solutions to understand how adaptable the solutions could be in the event that the lab needs to realign its business model to changing market conditions – Every little advantage helps.
I also see consolidation exerting pressure on large laboratories to look inwardly at processes not traditionally considered core testing. In response, labs are consolidating services like molecular testing and mass spectrometry into the core laboratory environment, while decentralizing higher volume testing back out to smaller satellite labs within their networks, releasing pressure on hub facilities. This raises complex logistical issues such as access to scientific expertise, harmonization of instruments across labs, distribution of testing volume, and transportation of samples.