Todd Abrams, President of Rigid Repair Center in Wellington, Fla., repairs on average, 350-400 scopes a month.

"What we do is a-z repairs on 99.9 % of the rigid endoscopes that are out there," he says. "We do a three-level system here. Level 1 would include a basic cleaning, opening up of the scope, evaluating what's wrong with it, replacing one rod lens, cleaning the scope and putting it back. Level 2 would be replacing the objective lens system, the working end glass piece, which is the expensive part. Level 3 is a complete rebuild. We will replace the inner and outer tubing, fiber-optic bundle, and any and all parts necessary to bring it back to original specifications. If it's run over by a bus we can fix it."

Perhaps that's why service companies have seen their business continue to grow over the years, even in today's economic climate.

"We are doing more than usual. I am seeing the future for repairs, at least in terms of the next year or two as the economy picks back up," says Abrams. "The hospitals are not getting the budgets they used to get so they can't buy those new toys with the bells and whistles and need to fix their old toys, which is our niche market. Business has been very good, especially since October."

But when so much business exists, that opens up the door for more businesses to try and take a stab at the market. Abrams says there are at least 275 arthoscopic rigid repair shops that he knows of, but many are operating out of their garage with little experience, no insurance and not much to stand behind their business except for slightly lower prices.

"There are way too many people doing repairs and sales these days. I have been doing repair business for over 15 years now and have seen the cost of the repair go up and the price I can charge my customers go down," says Adam Rudinger, President of Lex-Tech, Inc., which deals in refurbished arthroscopes. "This is due to a glut of repair companies that have popped up over the past few years. The new guy tries to undercut the existing guy and then a price war ensues."

This could affect the industry in the years to come.


International Market

Economic growth, corresponding increase in living standard, and aging population would continue to create a greater demand for arthroscopic procedures throughout the world.

Global Industry Analysts, Inc. reports that the United States, Europe, and Japan account for more than 85% of the global market for arthroscopy. Meanwhile Asia-Pacific and Latin America, each at about 10%, constitute the two fastest growing markets during the last decade.

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