Posted by
Medicalindustry on Tuesday, March 24, 2009 2:26:20 AM
The medical supplies and devices manufacturing industry includes about 12,000 companies with combined annual revenue of $78 billion. Large manufacturers include Johnson & Johnson, Baxter, Medtronic, and Boston Scientific. The industry is slightly concentrated: the 50 largest companies hold close to 60 percent of the market.
Medical supply and device manufacturers produce instruments, apparatus, and supplies used in the medical field. The industry doesn't include the manufacture of x-ray or electromedical equipment and devices, such as ultrasound equipment, pacemakers, and electrocardiographs.
COMPETITIVE LANDSCAPE
Demand is driven by population demographics and advances in medical knowledge and technology. The profitability of individual companies depends on the ability to develop superior products. Large companies have economies of scale in manufacturing and R&D. Small companies can compete successfully by specializing in a particular market segment, or through technical innovation. Annual revenue per employee is about $250,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include surgical and medical instruments such as syringes, hypodermic needles, and catheters (nearly 40 percent of industry revenue), and surgical appliances and supplies such as sutures, surgical dressings, and orthopedic devices (also about 40 percent). Other sources of revenue include lab equipment and furniture (centrifuges, scales, operating tables, hospital beds); ophthalmic goods (prescription glasses, contact lenses); and dental equipment and supplies.
Syringes are typically produced in assembly lines. The basic stages include needle formulation, plastic component molding, piece assembly, packaging, labeling, and shipping. Needles are produced from molten ...