The Inflation Struggle: How Lab Services Bear the Brunt

Written By Jade Hall

Inflation is an economic reality that impacts everyone, and laboratory services are no exception. Laboratories play a crucial role in scientific research, medical diagnostics, and a myriad of industrial applications. However, the rising tide of inflation takes a toll on lab services, affecting everything from the cost of supplies to labor expenses. Amid these challenges is the emergence of all-in-one autonomous devices like the KRAKEN, which sidestep the traditional reliance on extensive lab infrastructure to keep costs low.

Cost of Supplies

One of the fundamental aspects of any laboratory is the need for specific equipment, reagents, and materials to conduct tests accurately. As the cost of supplies increases due to inflation, laboratories find themselves grappling with higher overall expenses to maintain the quality and reliability of their tests. 

Specific reagents and chemicals are essential for many laboratory tests. These can range from basic chemicals to highly specialized compounds, each with its own associated cost. Moreover, the complexity and nature of the tests being conducted significantly impact the cost of supplies, as specialized tests may require more expensive materials. Disposable items, such as pipettes, glassware, sample containers, and filters, also contribute to the recurring cost of laboratory supplies. These consumables are necessary for daily operations but can add up over time.

This financial strain can have a cascading effect on the overall operational expenses of laboratories. Maintaining the quality and reliability of tests is non-negotiable for laboratories, as the accuracy of their results has far-reaching implications in fields such as healthcare, research, and industry. Thus, larger portions of laboratory budgets must be allocated to procure the necessary materials, often at inflated prices. Budget constraints may lead to compromises in the range and scope of services offered, potentially impacting the breadth of their contributions to scientific advancements and diagnostics, or result in higher costs for clients. 

Labor Costs

The backbone of any successful laboratory is its skilled personnel, technicians, and scientists. These individuals are essential for conducting tests, analyzing data, and ensuring the accuracy of results. Inflation often translates to higher wages and salaries to attract and retain qualified professionals. As labor costs rise, the financial burden on these facilities intensifies, creating a ripple effect throughout their operational budgets that drives up the costs of providing lab services.

To offset the increased labor expenses, laboratories often pass on the higher costs to clients and customers by adjusting service fees. Although fees charged for tests, analyses, and other services are adjusted to reflect the increased cost of skilled personnel, it may make frequent testing less feasible for some clients.

Technological Upgrades

Labs need to stay on the cutting edge of technology to maintain accuracy and efficiency in their operations. Inflation impacts the cost of purchasing or upgrading various technologies and equipment essential for conducting tests. Whether it's adopting the latest instrumentation or upgrading software systems, the financial strain induced by inflation adds complexity to the already challenging task of keeping up with technological advancements.

Advanced laboratory instruments and technologies often come with a significant upfront cost. Inflationary pressures can elevate these costs, making it more challenging for laboratories to invest in cutting-edge equipment without affecting their budgets. In addition to hardware, software systems also play a vital role in laboratory operations. Inflation can impact the cost of acquiring or upgrading these systems, adding to the operational expenses. Laboratories may need to allocate more resources to cover these costs, influencing the overall pricing structure of their services.

Furthermore, keeping up with technological advancements requires ongoing training for laboratory personnel. The increased costs associated with training programs and skilled professionals well-versed in the latest technologies contribute to the overall financial strain induced by inflation.

Overhead Expenses

Operating a lab involves more than just conducting tests; it requires a physical facility, utilities, and various operational expenses. Rent, electricity, water, and other overhead costs can all experience an uptick during inflationary periods. Labs are forced to allocate a significant portion of their budgets to cover these overhead expenses, diverting resources that could otherwise be invested in research, development, or the expansion of services.

Inflation can lead to an increase in the cost of renting laboratory spaces. Laboratories, often situated in specialized facilities equipped for scientific research, may find a substantial portion of their budgets redirected to cover elevated rent expenses. Laboratories also consume considerable amounts of electricity and water in their day-to-day operations. Inflation-driven increases in utility costs can strain budgets further, impacting the financial flexibility needed to maintain state-of-the-art facilities. Furthermore, inflation can result in higher costs for ongoing maintenance costs, including repairs, renovations, and routine upkeep, contributing to the financial burden faced by laboratories.

Conclusion

As laboratories grapple with the challenges of inflation, the rise of autonomous devices offers a promising alternative. By minimizing the reliance on traditional lab infrastructure, devices like the KRAKEN real-time monitoring platform provide a cost-effective and efficient solution to the financial burdens associated with inflationary costs. Through autonomous sampling, qPCR, data delivery, and system cleansing, the KRAKEN reduces labor costs and minimizes reagent waste. While traditional labs continue to bear the brunt of inflation, the innovative approach presented by all-in-one devices like the KRAKEN opens new possibilities for the future of testing, research, and diagnostics, potentially revolutionizing the landscape of lab services.

About Kraken Sense

Kraken Sense develops all-in-one pathogen detection solutions to accelerate time to results by replacing lab testing with a single field-deployable device. Our proprietary device, the KRAKEN, has the ability to detect bacteria and viruses down to 1 copy. It has already been applied for epidemiology detection in wastewater and microbial contamination testing in food processing, among many other applications. Our team of highly-skilled Microbiologists and Engineers tailor the system to fit individual project needs. To stay updated with our latest articles and product launches, follow us on LinkedIn, Twitter, and Instagram, or sign up for our email newsletter. Discover the potential of continuous, autonomous pathogen testing by speaking to our team.