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Worldwide, medical device professionals are more positive about the business environment in 2013 than they were in 2012. That’s the consensus from Emergo Group’s 2013 Medical Device Industry Survey. Overall, approximately 71% of survey responses are positive, up from 67% in 2012.
The survey found that global economic uncertainty has not impeded industry growth, and most companies expect to find opportunities driven by aging populations and the growing middle classes in Brazil, India, China and other emerging markets.
Other key findings:
The 2.3% excise tax
- Nearly 64% of North American companies say they’ll be negatively impacted by the tax. Further, it might have far-reaching effects, as 40% of Asia Pacific companies say they’ll be negatively impacted and 33% of companies based in Europe, Middle East and Africa had the same reaction.
- Survey respondents indicated that they would pass along some of their increased costs to customers (41.6%), cannot disclose (36.1%), will work to lower production costs without reducing staff (31.1%), invest less in research and development (11.7%), reduce staff (11.1%) and exit the U.S. market (1.9%).
What are the biggest challenges identified by Presidents, CEOs, COOs and Managing Directors at medical device companies?
- Changing regulatory environment—44%
- New product development—41.8%
- Access to capital/credit/financing—40.6%
- Pricing pressure—33.3%
- Increased competition—20.8%
- Changing reimbursement environment—18.8%
- Employee retention/recruiting—16.9%
Which new markets are cited as the most attractive?
Interest in emerging markets continues to grow. Survey respondents say their companies plan to introduce a new medical or in vitro diagnostic device in the following countries listed by popularity:
- Brazil
- China
- Mexico
- India
- Russian Federation
- Saudi Arabia
- Argentina
- South Korea
- Turkey
- Singapore
The majority of survey respondent titles fell into the categories of regulatory, quality and clinical professionals. While the survey was not orthopaedic-specific, Chris Schorre, Emergo Group Vice President of Global Marketing, says he expects that the answers wouldn’t vary even if the survey was fully orthopaedic-focused.
REFERENCE:
Emergo Group, Outlook for the medical device industry in 2013, www.emergogroup.com. Accessed April 2013.
