Brussels, 19 May 2009 – The global economic crisis and recession have shaken many governments and industries. However, a recent survey conducted by Eucomed of 100 top executives at medical technology manufacturers across Europe defies this trend with only 20% of respondents noticing a significant negative impact on their business. The vast majority are nevertheless anticipating tougher times due to the downturn and restructuring of healthcare systems. Over 80% of respondents agree that hospitals are struggling financially, price pressure is increasing, and tendering and contracting conditions have worsened.
Many executives said they have already started preparations to keep solvent, with half indicating they ‘feel well prepared’. Meanwhile, two-thirds are controlling costs by making redundancies or introducing hiring freezes.
Overall, the outlook is one of optimism. While the majority of respondents said that investments have remained the same or have only been moderately reduced, approximately one-third say new business investment has actually increased. Furthermore, some 40% of executives identified pockets of growth for existing products and stated that they are confident about continued product launches over the next five years. Finally, most see attractive opportunities in Mergers and Acquisitions and business development.
According to John Wilkinson, Chief Executive of Eucomed, “the outlook for the medical technology industry remains relatively promising. It is, however, clear that the industry is bracing itself for the potential effects of the financial crisis to work through the system. In these times of financial uncertainty, it is to be hoped that the industry’s customers see innovation as a key mechanism for responding to the pressures. The industry certainly has much to offer and appears committed to continue investment in research and development.”
Bolstered by the initiatives undertaken to face a tougher environment, executives at medical product companies across Europe view the growth prospects of their companies positively. More than 50% expect over 5% growth for 2009 with two-thirds expecting more than 5% growth for 2010-11.
It appears that at least for now in European medical technology industry, the focus is on the future and on ensuring that businesses can develop and deliver medical products for the years to come.
Support and analysis were provided by McKinsey & Company.
The full report is available upon request
Eucomed is the Voice of the medical technology industry in Europe. Eucomed represents directly and indirectly 4500 designers, manufacturers and suppliers of medical technology used in the diagnosis, prevention, treatment and amelioration of disease and disability. Small and medium sized companies make up more than 80% of this sector. The European medical technology industry invests some €5.8 billion in R&D and employs near to 530,000 highly skilled workers. The mission of Eucomed is to improve patient and clinician access to modern, innovative and reliable medical technology.
Mark Grossien
Director Communications and External Affairs
mark.grossien(at)eucomed(dot)be
+32 (0)2.775.92.24
