Industry Analysis & Industry Trends
The recession did little to deter hospitals and other customers from purchasing medical devices, and the anticipated economic recovery will only help the industry grow further. Medical device manufacturers will continue to benefit from the aging US population, while the influx of newly insured people due to the healthcare reform bill will drive up demand for industry products. However, the regulatory environment is growing more stringent, which will hamper profit and force some companies to shift functions overseas... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a medium level of capital intensity; for every $1.00 spent on wages, $0.15 is invested in capital improvements. Medical device manufacturers produce a range of products for highly specialized applications. Not all products can be manufactured on an automated production line, so the need for hands-on work increases labor costs. Skilled specialists are needed to research and develop medical devices, and these employees command salaries well above the manufacturing sector's average wage. Wages account for about 19.7% of revenue in 2014.
Depreciation costs represent about 3.0% of revenue. The larger firms within the industry frequently acquire small firms to broaden their range of products and markets, which raises capital expenditure... purchase to read more