Thursday, January 10 2019
By Lisa A. Bastian, President, Bastian PR
The U.S. medical device industry holds the title as the world's largest medical device market, boasting a market size of around $156 billion. In 2017, the industry represented nearly 40 percent of the global medical device market.
Highly competitive and driven by heavily-funded R&D initiatives, its universe of diverse products prevent, diagnose and treat illnesses or diseases, or are used to detect, measure, restore, correct and modify a bodily function or structure for health reasons. Industry players create everything from dental equipment/supplies, electro-medical equipment and in-vitro diagnostics, to irradiation apparatuses, surgical appliances and medical instruments.
Wednesday, January 10 2018
By Michael D. White, author and freelance writer
It’s virtually impossible to take an analytical look at the medical device manufacturing sector without first looking at the 500-pound gorilla in the room the federal government’s medical device tax.
Originally included in the Affordable Care Act (ACA), the tax imposed a 2.3 percent sales tax on medical devices and supplies including pacemakers, optical diagnostic equipment, syringes, artificial joints, surgical gloves, ultrasound devices, and dental instruments that has proven to be “a severe drag on companies' ability to invest in and grow their businesses, whether in new facilities, infrastructure improvements, R&D or new hires,” says Mark Brager, vice president of communications at the Advanced Medical Technology Association in Washington, D.C.
According to industry analysts, the industry's federal income tax liability would be approximately $8.7 billion for 2013, the first year the tax was in effect a 30 percent increase in the industry's total tax burden, solely due to the device tax.
Thursday, January 12 2017
By Pete Mohan, Site Selection Consultant, Wadley Donovan Gutshaw Consulting
Medical device manufacturing is a dynamic industry, holding the attention of nearly every economic development agency in the country. However, with only about 300,000 employed in the industry nationwide, there are certainly limited opportunities to secure such operations. To help understand the direction that business is heading, a closer look at the prevailing trends is necessary. As saturation in traditional MedTech markets begins to push activity to other parts of the U.S. and the globe, new growth opportunities emerge for the burgeoning industry.
Throughout the nation, manufacturing employment faces the growing headwinds of automation and process improvement. Despite a growing economy since the end of the Great Recession that has seen a 6.9 percent increase in overall employment since 2012, manufacturing employment growth was less than half that rate (3.3 percent). The highly-technical nature of most medical device manufacturing operations makes the industry even more susceptible to technological forces, resulting in decreased employment but increased efficiency and profitability. This is corroborated by a decrease in employment of a half percent over the same period, while simultaneously growing gross wages by 11.3 percent, a truly impressive increase in the face of employment loss. See Table A.
Monday, May 23 2016
By Tim Shea, General Manager of Product Development and Angelos Angelou, Principal Executive Officer, Chief Strategist, Angelou Economics
New Brighton, Minnesota. It’s the quintessential Middle American town, cold in the winter, humid in the summer. The people are friendly year round. Children play in the creek running through the neighborhood park, and the Dairy Queen across the street is ready to make them Blizzards when they’re done. A few miles down the road, though, is something rarely seen in America, at least not anymore: a factory.
A medical device factory, to be exact, Donatelle Medical. In operation since 1967, Donatelle is a staple of both the Minneapolis suburb and the healthcare industry alike. Cochlear implants, pacemakers, medication pumps, they make it all. They also employ hundreds of workers and inject millions of dollars into the local economy every year.