A comparison between small environmental labs and large labs

 

Environmental testing labs Orange come in different sizes. They can be divided into large labs and small labs. Large labs have a national orientation and the inclination and ability to serve high-volume customers with sophisticated environmental testing needs.

They conduct a large percentage of testing related to the superfund program and most of the testing for large manufacturing corporations. Between large and small labs, there are medium-sized labs. These are medium-sized labs that pursue niche marketing and tailor services to regional testing requirements of companies. The sophistication of these labs is on par with large labs but they tend not to serve very high volumes of customers.

On the lower side, we have small labs. These serve a narrower range of regional and local customers. They tend to concentrate on simple testing procedures. Above a certain size, we may have environmental testing labs’ diseconomies of scale. Smaller labs conduct simpler procedures. They also process lower volumes of samples so it is not surprising that they are the least profitable.

But large labs appear to be less profitable compared to medium size labs. This causes worry in some people but the reason is unclear. Here are some comparisons to help you understand this matter.

Cost

Large labs have higher cost structures compared to medium-size testing labs. There are two main factors accounting for the disparity in costs – overhead costs and personnel costs. Part of the reason for the higher administrative burden for large labs is that as the labs grow into new geographic areas, the complexities and costs of maintaining proper certifications multiply.

Customer mix and market

Large environmental testing labs Orange have a high volume national orientation and cater to customers that are too demanding. These labs are focused on cost. On the other hand, medium-sized labs specialize in niche markets where there are no severe pricing pressures.