Study Finds Optimism Slipping Among European Medtech Executives

European medical technology executives and board members once were optimistic about their companies’ prospects this year and next.

Not anymore.

Nine of 10 executives had planned for earnings growth in both years, resulting from higher sales volumes. According to the “MedTech Executives Flash Report” study by the internationally operating management consultancy Horváth, 86% expected an increase of more than 5% this year, and 79% expected such growth in 2026.

“The U.S. tariffs are now hindering suppliers’ business plans, even though about one-third of European medtech companies have set up production sites in North America,” Horváth Partner and study head Philipp Temmel noted. For the remaining companies, regionalizing the supply chain or the adapting the “production footprint” according to the “local for local” principle is now also at the top of the agenda or is currently being implemented.

Temmel said some companies benefit from the fact “there are only a few suppliers of specialty products worldwide. In the short to medium term, it will be impossible to develop and produce these products from scratch in North America. U.S. customers therefore have no choice but to pay the price premiums.” However, manufacturers are still significantly impacted by postponed purchases and customer investments, as well as increased materials parts costs due to customs surcharges. Additionally, as uncertainty reigns, buyers (historically) tend to purchase average-quality products rather than high-end ones.

Cost optimization remains at the top of managers’ agenda for companies surveyed in the Horváth study. “The financial room for maneuver that was created by consistently reducing costs and increasing efficiency was actually intended for necessary transformations and innovations. However, it is likely to be needed to secure liquidity, given the drastic downward revision of sales plans,” Temmel stated. Nevertheless, the field of action “Automation & AI implementation” ranks second behind cost optimization in the industry’s top management priorities for 2025, followed by “optimization of organizational structures.” “This triad will shape 2025, with strategic topics taking a lower priority,” Temmel contends. “In the area of digitalization and AI, companies must pay even more attention to investing in technologies that demonstrably contribute to value creation through use cases.”What advice does the management consultancy Horváth offer medical technology manufacturers in the current situation? Industry expert Temmel says: “In the worst-case scenario, the current year will turn out to be a ‘lost year’ in terms of growth. However, the situation is so dynamic that companies shouldn’t be deterred. They should continue their digitization and relocalization programs regardless of the customs developments—and focus on their assets, such as excellent products and technological innovations.”

The “MedTech Executives Flash Report” study examined the business prospects and strategic priorities of European medical technology manufacturers and life sciences companies with a medical technology division. Study administrators conducted personal, in-depth interviews with board members and managers in April.

Horváth is an international, independent management consultancy with 1,400 employees at locations in Europe, the United States, and in other global markets. As a top consultancy for transformation, performance management, and digitalization, the organization leads companies and public organizations to sustainable success and significant long-term value creation. Horváth is characterized by sound, innovative approaches and solutions – based on its roots and values, shaped by founder Professor Péter Horváth. Above all, our clients, from the managing board to the specialist level, appreciate our focus on efficiency and effectiveness as well as the trust-based collaboration with our team members. Horváth has received numerous awards as a result of our clients’ high level of satisfaction with our project results.