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Medical Equipment and Supplies Manufacturing Market Profile Whole in Surgical and Medical Instrument Manufacturing, with a Location Quotient of 0.07

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Medical Equipment and Supplies Manufacturing Market Profile Whole in Surgical and Medical Instrument Manufacturing, with a Location Quotient of 0.07 Overview Medical Equipment and Supplies Manufacturing includes two specific subsectors: 339112 Surgical and Medical Instrument Manufacturing - This U.S. industry comprises establishments primarily engaged in manufacturing medical, surgical, ophthalmic, and veterinary instruments and apparatus (except electrotherapeutic, electromedical and irradiation apparatus). Examples of products made by these establishments are syringes, hypodermic needles, anesthesia apparatus, blood transfusion equipment, catheters, surgical clamps, and medical thermometers. Medical 339113 Surgical Appliance and Supplies Manufacturing - This U.S. industry comprises establishments primarily engaged in manufacturing surgical appliances and supplies. Examples of Equipment and products made by these establishments are orthopedic devices, prosthetic appliances, surgical dressings, crutches, surgical sutures, personal industrial safety devices (except protective Supplies eyewear), hospital beds, and operating room tables. Source: www.census.gov/eos/www/naics/ National Industry Trends Manufacturing Over the five years to 2025, industry revenue is projected to grow at an annualized rate of 1.1%. Recently revenue has been increasing as a result of rising demand for medical instruments and supplies brought Market Profile on by the COVID-19 pandemic. The market has shifted partly due to COVID as well towards products that are disposable for both safety and cost reasons. Operating profit, measured by earnings before interest and taxes, has increased in the past five years and is estimated at 10.9% of industry revenue, up from 10.0% in 2015. Additionally, COVID has caused demand to skyrocket for medical instruments and supplies contributing to higher prices and therefore, higher profit. Looking forward profit may be constrained by the growing presence of group purchasing organizations (GPO), which purchase medical instruments and supplies in bulk for groups of healthcare providers. State of Maine DECD | Domestic Trade Baseline Study | 1 Healthcare insurance - number of people with health insurance The trade-weighted index (TWI) - measures the strength of the US dollar relative to the currencies of its major trading partners. When the value of the US dollar declines, imported goods become more expensive for US consumers, increasing demand for the domestic Medical Instrument and Supply Manufacturing industry. The TWI is expected to rise in 2020. National Performance In 2020 the Medical Equipment and Supplies Manufacturing Over the five years to 2020, the number of industry operators is industry consisted of 5,565 payrolled businesses in the US employing a expected to fall. This is mainly attributed to industry consolidation, total of 241,812 workers with average annual earnings of $117,868. driven by large industry operators acquiring smaller companies that may Between 2015 and 2020, employment grew 9% and is projected to grow be able to offer access to new technologies or markets. Downstream by 6% between 2020 and 2025. From 2015 to 2020, Medical customers are also consolidating. Hospitals are increasingly acquiring Equipment and Supplies Manufacturing business locations grew from doctors' practices, putting physicians closer to hospital administrators 4,859 to 5,667 for a growth of 17%. 2019 sales in this industry in the US that want to control costs for pricey instruments and supplies. Large totaled $86.7 billion of which an estimated $66.8 billion (77%) were industry operators can benefit as hospitals thin their lists of product domestic sales (made to entities in the US) and $19.9 billion (23%) were vendors. Smaller companies with less negotiating leverage will likely exports (made to entities outside of US). Source: EMSI experience significant downward pricing pressure and struggle to maintain profitability as a result. By 2025 the average industry profit is Maine Performance projected to decrease and account for 10.3% of revenue, down from In 2020, the Medical Equipment and Supplies Manufacturing industry 10.9% in 2020. Source: IBISWorld consisted of 20 payrolled businesses in Maine employing a total of 744 Key Industry Drivers workers with average annual earnings of $70,952. Between 2015 and 2020 employment grew 25% and is projected to grow 5% between 2020 The following are key factors that drive the industry market (IBIS): and 2025. During that time, payrolled business locations in Maine grew from 16 to 20 for a growth of 25%, outpacing national growth. In terms Number of physician visits of industry concentration1, Maine, with a location quotient of 1.59, is Number of adults aged 65 and older more concentrated in Surgical Appliance and Supplies Manufacturing Research and development expenditure compared to the US as a whole and less concentrated than the US as a 1 Location quotient (LQ) is a method of quantifying how concentrated a same share of jobs locally as it does nationally, i.e. is equally concentrated. particular industry is in a region as compared to the nation. It can reveal An LQ greater than 1 indicates a higher-than-average level of what makes a particular region “unique” in comparison to the national concentration, while an LQ less than 1 indicates a lower-than-average level average. An LQ of 1 indicates that a particular industry represents the of concentration. 2 | Medical Equipment and Supplies Manufacturing Market Profile whole in Surgical and Medical Instrument Manufacturing, with a location quotient of 0.07. Source: EMSI In total in 2019, entities in Maine purchased $282.1 million in Medical Equipment and Supplies $22.1 million (8%) of which were purchased Sales in this industry in Maine in 2019 totaled $211.3 million, of which from other businesses in the state, and $260.0 million (92%) were an estimated $22.0 million (10%) were domestic sales (made to entities purchased from businesses located out of the state. Source: EMSI in Maine) and $189.2 million (90%) were exports (made to entities outside of Maine). State of Maine DECD | Domestic Trade Baseline Study | 3 Supply Chain & Domestic Trade Key Buying Industries (IBISWorld) 1st Tier o Medical Supplies Wholesaling in the US 2nd Tier o Hospitals in the US o Dentists in the US o Primary Care Doctors in the US o Specialist Doctors in the US Key Selling Industries (IBISWorld) 1st Tier o Plastic Pipe & Parts Manufacturing in the o US Hose & Belt Manufacturing in the US 2nd Tier o Iron & Steel Manufacturing in the US o Glass Product Manufacturing in the US o Plastic & Resin Manufacturing in the US 4 | Medical Equipment and Supplies Manufacturing Market Profile The following tables display the industries that Medical Top Industries Medical Equipment and Supplies Manufacturing is Purchasing from in the United States, 2020 Equipment and Supplies Manufacturing are selling to and NAICS Purchases from Total Purchases buying from in the United States and Maine. The top industries 339113 Surgical Appliance and Supplies Manufacturing $1,418,720,544 that Medical Equipment and Supplies Manufacturing in the 551114 Corporate, Subsidiary, and Regional Managing Offices $1,260,702,365 United States purchases from are Surgical Appliance and 423430 Computer and Computer Peripheral Equipment and Software Merchant Wholesalers $1,133,311,067 423450 Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers $1,029,582,658 Supplies Manufacturing with over $1.4 billion in purchases 326199 All Other Plastics Product Manufacturing $937,955,863 followed by Corporate, Subsidiary, and Regional Managing 325211 Plastics Material and Resin Manufacturing $884,792,334 Office ($41.3 billion) and Computer and Computer Peripheral 541110 Offices of Lawyers $761,828,015 339112 Surgical and Medical Instrument Manufacturing $580,203,721 Equipment and Software Merchants Wholesalers ($1.1 billion). 332114 Custom Roll Forming $505,788,601 Top industries Medical Equipment and Supplies 325220 Artificial and Synthetic Fibers and Filaments Manufacturing $448,534,049 Manufacturing sells to in the nation include General Medical 331110 Iron and Steel Mills and Ferroalloy Manufacturing $439,386,937 and Surgical Hospitals ($9.7 billion), Office of Physicians ($2.7 425120 Wholesale Trade Agents and Brokers $422,547,027 541990 All Other Professional, Scientific, and Technical Services $401,718,139 billion), and Surgical and Medical Instrument Manufacturing 326113 Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing $384,909,224 ($1.4 billion). 333314 Optical Instrument and Lens Manufacturing $346,860,344 332710 Machine Shops $337,386,413 541611 Administrative Management and General Management Consulting Services $318,923,455 322211 Corrugated and Solid Fiber Box Manufacturing $315,339,501 533110 Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) $298,801,679 326111 Plastics Bag and Pouch Manufacturing $292,254,411 Source: EMSI State of Maine DECD | Domestic Trade Baseline Study | 5 The Medical Equipment and Supplies Manufacturing industry in and Surgical Hospitals ($2.8 million), Office of Physicians ($740,000), Maine purchases over $2.9 million from Corporate, Subsidiary, and and State Government, Excluding Education and Hospitals ($546,000). Regional Managing Offices with 44% of those purchases coming from Of the top twenty industries that Medical Equipment and Supplies within the state. In total Maine and the United States share seventeen Manufacturing are selling to, Maine and the United States share fifteen of the top twenty purchasing industries for Medical Equipment and in
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