INDIANAPOLIS, Ind., – According to a report released
today by BioCrossroads, the medical devices industry is one of Indianas most valuable
economic assets employing over 20,000 people, and generating more than $10
billion of annual economic output. The first of its kind report, From Hearts to
Hips: Indianas
Leadership in Medical Devices, was compiled by FaegreBD Consulting and BioCrossroads
to shed light on the current landscape of the sector and to identify challenges
on the horizon.
Today, the medical devices sector accounts for more than 40
percent of the jobs in the states life sciences industry placing Indiana as
the fifth largest state in percentage of medical technology industry
employment. And in 2010, Indianas
medical device companies manufactured more than $2 billion worth of exports, or
approximately $100,000 per employee. The industry provides high-paying jobs
with the average employee earning $60,000 annually, more than 56 percent higher
than the states average private sector worker.
“From small towns to larger cities, the economic impact of
the medical devices industry is significant and is well-distributed throughout
the state,” said David Johnson, president and CEO of BioCrossroads. According
to the report, the geographic diversity of the sector spans Warsaw
and Indianapolis to Bloomington,
Spencer and West Lafayette.
A recognized leader in the field, Indianas medical devices sector is highly
diversified and offers a broad depth of products used throughout the world. Major
companies such as Biomet, Boston Scientific, Cook Medical, DePuy, Medtronic,
Roche Diagnostics and Zimmer are either headquartered or maintain major
operations within the state and develop a wide variety of medical devices for
from cardiovascular to urological to diagnostics and orthopedics.
“This report is proof that Indianas medical devices sector is robust and
resides on a solid foundation that positions us well for future growth,” added
Johnson. “There are still many external factors like the economic, regulatory
and health care reform environment that pose real challenges for this
industry.”
The report delves into external challenges the industry
faces today. In addition to the current economic conditions that have lowered
the demand for some medical devices, the industry faces even bigger challenges
to overcome in the next decade including:
- A rapidly changing health care market
- Tax policies that discourage innovation
- Increasing regulatory uncertainty
- A shift to overseas production and expansion to overseas
markets - Technological changes requiring more worker education
- Increasingly competitive global market
“Indianas
medical device industry is a cornerstone to the states life sciences sector
and the states economy overall,” said Dave Zook, Chair at FaegreBD Consulting.
“There are several looming challenges that, if unaddressed, will significantly weaken
the industry and the states economy.”
The full report is available at www.biocrossroads.com
About BioCrossroads
BioCrossroads (www.biocrossroads.com)
is Indiana’s initiative to grow, advance and invest in the life sciences, a
public-private collaboration that supports the region’s existing research and
corporate strengths while encouraging new business development.
BioCrossroads provides money and support to life sciences businesses, launches
new life sciences enterprises (Indiana Health
Information Exchange, Fairbanks
Institute for Healthy Communities, BioCrossroadsLINX, OrthoWorx and Datalys Center), expands collaboration
and partnerships among Indiana’s life science institutions, promotes science
education and markets Indiana’s life sciences industry.
