Christopher Delporte, Group Editor11.12.07
With each edition of Medical Product Outsourcing, we endeavor to feature the breakthroughs and benefits of medical device technology. From cutting-edge products and improvements in manufacturing to supplier advances and business trends—along with many other issues—these topics highlight the best the industry has to offer and, in turn, demonstrate how those successes ultimately benefit patient care.
As we wrap up our coverage of 2007, this issue is no exception. For example, in her feature “Brain Power” (see page 42), Jennifer Whitney explores advances in neurovascular technology, talking to a host of medical technology companies tackling varied areas of this growing sector. It’s clear that this niche of the device industry is having an important impact on the options patients will have in treating many different conditions.
“Neurotechnology is the new frontier, especially now that cardiology markets are maturing,” Jason Wittes, managing director, medical devices, cardiology and orthopedics, for Leerink Swann, a full-service investment banking service in Boston, MA, told MPO. “Neurotechnology is definitely changing the way medicine is practiced. It’s allowing device treatments into markets, where the best and only option used to be drugs. Specific markets include pain management, stroke movement recovery, weight loss and depression—areas that were poorly served by drugs.”
While we’re used to putting the industry’s successes in context of patient care or even a robust bottom line, a recent report by the Lewin Group, commissioned by the Washington, DC-based trade group AdvaMed, outlines the positive effect they have on the US economy.
“This new study demonstrates that medical technology is a powerful driver of economic growth and a source of high-paying jobs,” said AdvaMed President and CEO Steve Ubl. “It is critical for policymakers at the federal, state and local levels to understand that innovation is not only driving advances in patient health, but in the health and strength of the national, state and local economies.”
As part of the US economy in 2006 (the most recent figures available), the medical technology industry employed 357,700 workers, paid $21.5 billion in salaries and shipped $123 billion worth of products (about 5.5% of the total health industry), according to the report. Research also showed that each medical technology job generates an additional 4.5 jobs across the nation. The report highlights the industry’s positive impact on individual state economies with regard to salary, employment and sales.
In a median state (half the states have larger and smaller impacts, respectively), the report illuminates some interesting facts. Each medical technology job generates an additional two jobs in the state. Each dollar paid as payroll for a medical technology employee generates an additional $1.12 in payroll in that state. In addition, each dollar of medical technology sales generates another 90 cents in sales in that state.
Large states have the highest employment in the medical technology sector. In 2006, California had the largest number of medical technology jobs with 72,500 workers, followed by Massachusetts (21,847), Florida (19,949), Minnesota (18,571), New Jersey (17,953) and Pennsylvania (17,482).
Still, a number of smaller states had high concentrations of medical technology jobs. Utah and Delaware, for example, have the highest concentration of medical technology jobs relative to total employment—almost three times the national average.
The report also noted that in the large majority of states, wage rates for medical technology jobs were substantially above the state average salary. In the median state (Colorado), medical technology paid 24.4% more than the average job. Medical technology jobs pay more than 50% above the average job in Arizona, Arkansas, Mississippi and Wisconsin. Annual pay for medical technology employees exceeded $50,000 in six states: Georgia, Maryland, Massachusetts, Minnesota, New Jersey and Washington.
Also worth noting, the two sectors that make up 50% of overall industry sales and employments are orthopedic devices, surgical sutures and dressings ($33.2 billion in sales; 101,000 employees) as well as surgical and medical instruments and supplies ($33 billion; 100,000 employees).
If you’re interested in how companies hold on to (or should) their good employees, turn to page 56 in Stacey Bell’s feature “Plan to Prosper.” She highlights some of the benefits of and strategies for retaining superstar employees.
We hope your 2007 has been a year of breakthroughs and benefits, and we look forward to continuing to explore the best of what the industry has to offer in 2008.
As we wrap up our coverage of 2007, this issue is no exception. For example, in her feature “Brain Power” (see page 42), Jennifer Whitney explores advances in neurovascular technology, talking to a host of medical technology companies tackling varied areas of this growing sector. It’s clear that this niche of the device industry is having an important impact on the options patients will have in treating many different conditions.
“Neurotechnology is the new frontier, especially now that cardiology markets are maturing,” Jason Wittes, managing director, medical devices, cardiology and orthopedics, for Leerink Swann, a full-service investment banking service in Boston, MA, told MPO. “Neurotechnology is definitely changing the way medicine is practiced. It’s allowing device treatments into markets, where the best and only option used to be drugs. Specific markets include pain management, stroke movement recovery, weight loss and depression—areas that were poorly served by drugs.”
While we’re used to putting the industry’s successes in context of patient care or even a robust bottom line, a recent report by the Lewin Group, commissioned by the Washington, DC-based trade group AdvaMed, outlines the positive effect they have on the US economy.
“This new study demonstrates that medical technology is a powerful driver of economic growth and a source of high-paying jobs,” said AdvaMed President and CEO Steve Ubl. “It is critical for policymakers at the federal, state and local levels to understand that innovation is not only driving advances in patient health, but in the health and strength of the national, state and local economies.”
As part of the US economy in 2006 (the most recent figures available), the medical technology industry employed 357,700 workers, paid $21.5 billion in salaries and shipped $123 billion worth of products (about 5.5% of the total health industry), according to the report. Research also showed that each medical technology job generates an additional 4.5 jobs across the nation. The report highlights the industry’s positive impact on individual state economies with regard to salary, employment and sales.
In a median state (half the states have larger and smaller impacts, respectively), the report illuminates some interesting facts. Each medical technology job generates an additional two jobs in the state. Each dollar paid as payroll for a medical technology employee generates an additional $1.12 in payroll in that state. In addition, each dollar of medical technology sales generates another 90 cents in sales in that state.
Large states have the highest employment in the medical technology sector. In 2006, California had the largest number of medical technology jobs with 72,500 workers, followed by Massachusetts (21,847), Florida (19,949), Minnesota (18,571), New Jersey (17,953) and Pennsylvania (17,482).
Still, a number of smaller states had high concentrations of medical technology jobs. Utah and Delaware, for example, have the highest concentration of medical technology jobs relative to total employment—almost three times the national average.
The report also noted that in the large majority of states, wage rates for medical technology jobs were substantially above the state average salary. In the median state (Colorado), medical technology paid 24.4% more than the average job. Medical technology jobs pay more than 50% above the average job in Arizona, Arkansas, Mississippi and Wisconsin. Annual pay for medical technology employees exceeded $50,000 in six states: Georgia, Maryland, Massachusetts, Minnesota, New Jersey and Washington.
Also worth noting, the two sectors that make up 50% of overall industry sales and employments are orthopedic devices, surgical sutures and dressings ($33.2 billion in sales; 101,000 employees) as well as surgical and medical instruments and supplies ($33 billion; 100,000 employees).
If you’re interested in how companies hold on to (or should) their good employees, turn to page 56 in Stacey Bell’s feature “Plan to Prosper.” She highlights some of the benefits of and strategies for retaining superstar employees.
We hope your 2007 has been a year of breakthroughs and benefits, and we look forward to continuing to explore the best of what the industry has to offer in 2008.