Medical Equipment & Supplies Manufacturing Industry Overview

Excerpt from Medical Equipment & Supplies Manufacturing Report

Companies in this industry manufacture medical equipment and supplies, including surgical and medical instruments, dental equipment, and surgical appliances. Major companies include Baxter International, Boston Scientific, Johnson & Johnson, and Medtronic (all based in the US), as well as B. Braun (Germany), PRIM (Spain), Smith & Nephew (UK), and Terumo (Japan).

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. The industry is concentrated: the 50 largest companies account for about 60 percent of revenue.

Products, Operations & Technology

Major products include surgical and medical instruments (about 30 percent of industry revenue), such as syringes, hypodermic needles, and catheters, and surgical appliances and supplies (about 25 percent), such as sutures, surgical dressings, and orthopedic devices. Other sources of revenue include lab equipment and furniture (centrifuges, scales, operating tables, hospital beds); ophthalmic goods (prescription glasses, contact lenses); diagnostic and anesthetic equipment; and dental equipment and supplies.