Medical Instruments is one market area that offers the strongest prospects for value added growth over the next few years. MX: Business Strategies for Medical Technology Executives, in its May/June 2008 edition, estimates that the medical device market will reach sales of $336 billion in 2008.
Aging population and baby boomers’ demand for active lifestyles supports a strong market for precision medical components in the short and long term. Here are 5 reasons for your precision machining company to consider serving the medical market:
1) Demographic makeup of the U.S. population is promising for future growth in the biotech industry.
2) Private equity investment in biotech grew more than two fold during each year between 2003 and 2007. Investment trends will remain strong as medical devices companies continue to innovate and deliver safer and more advanced solutions.
3) Aging population, longer life expectancy, and an increase in chronic illnesses will help the biotechnology industry in the both the near and long term.
4) Healthcare products and supplies revenue will be generated heavily from orthopedics, cardiology, diagnostic imaging, pain management, and oncology in the near term.
5) The outlook for demand of high-tech medical products such as hospital beds, sterilization equipment, and blood analyzers is high because of the aging demographics.
The medical device market is about 50 percent of the world pharmaceutical market, and it is growing faster than the drug market. The medical devices market was $336 billion in 2008.
Value added (sales less cost of materials) is a strong determinant of growth for sales to the markets served by the precision machining industry. Value added is not expected to be positive in the near term for all industries. Value added is expected to remain high for medical market.
What has your shop identified as the most compelling reasons to enter the medical machining market?