Medical Supplies and Devices Industry Profile

The US medical supplies and devices manufacturing industry includes about 11,000 companies with combined annual revenue of $75 billion. Major companies include Baxter International, Boston Scientific, Johnson & Johnson, and Medtronic. The industry is highly concentrated: the 50 largest companies account for about 75 percent of revenue.

Medical supply and device manufacturers produce surgical, ophthalmic, and dental instruments 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.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include surgical and medical instruments (about 40 percent of industry revenue), such as syringes, hypodermic needles, and catheters, and surgical appliances and supplies (also about 40 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.

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 ...