FOR IMMEDIATE RELEASE
October 01, 2007
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New Report Demonstrates the Powerful Impact of
Medical Technology on State Economies
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WASHINGTON, D.C. – In addition to playing a critical role in improving the quality of life and health of patients everywhere, the medical technology industry is a strong, vibrant and growing part of the U.S. economy, according to a new report by The Lewin Group, a prominent health research firm, released today at
AdvaMed 2007 – The MedTech Conference.
“America’s medical technology companies are highly regarded by patients and health care providers for their contributions to the health and well-being of the nation, but there is less awareness of the important economic contributions from these companies in every state in the nation,” said AdvaMed President and CEO Stephen J. Ubl.
“This new study demonstrates that medical technology is a powerful driver of economic growth and a source of high-paying jobs. It is critical for policymakers at the federal, state and local levels to understand that innovation is not only driving advances in patient health, but in the health and strength of the national, state and local economies.”
The Lewin Group notes that as part of the U.S. economy in 2006, the medical technology industry employed 357,700 workers, paid $21.5 billion in salaries, and shipped $123 billion worth of products. The report also found that each medical technology job generates an additional 4.5 jobs across the nation.
The report highlights the industry’s positive impact on individual state economies with regard to salary, employment and sales. In a “median” state, The Lewin Group found:
• Each dollar paid as payroll for a medical technology employee generates an additional $1.12 in payroll in that state;
• Each dollar of medical technology sales generates another $0.90 in sales in that state.
Large states have the highest employment in the medical technology sector. In 2006, California had the largest number of medical technology jobs with 72,500 workers, followed by Massachusetts (21,847), Florida (19,949), Minnesota (18,571), New Jersey (17,953) and Pennsylvania (17,482).
Still, a number of smaller states had high concentrations of medical technology jobs. Utah and Delaware have the highest concentration of medical technology jobs relative to total employment—almost three times the national average. Nebraska, New Hampshire and South Dakota were also in the top ten states with respect to share of medical technology jobs relative to total employment.
The report notes that in the large majority of states, wage rates for medical technology jobs were substantially above the state average salary. In the median state (Colorado) medical technology paid 24.4 percent more than the average job.
• Medical technology jobs pay more than 50 percent above the average job in Arizona, Arkansas, Mississippi and Wisconsin;
• Annual pay for medical technology employees exceeded $50,000 in six states: Georgia, Maryland, Massachusetts, Minnesota, New Jersey and Washington;
• Seventeen states paid more than $40,000, while only six states paid industry employees less than $34,000.
The analyses in this report are based on the most current and comprehensive data available from the U.S. Census Bureau. National estimates on the employment and size of the MTI are based on the 2005 Annual Survey of Manufactures, trended forward to 2006. The distribution of MTI jobs across the 50 states and the District of Columbia is based on the 2002 Economic Census, augmented by the 2002-2004 County Business Patterns. Salary comparisons are based on 2002 Census data, the most recent year with reliable and comprehensive data.
Access a copy of the full
report, which is also available from the News Room section of our Web site at
www.AdvaMed.org.
# # #AdvaMed member companies produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments. Our members produce nearly 90 percent of the health care technology purchased annually in the United States and more than 50 percent purchased annually around the world. AdvaMed members range from the largest to the smallest medical technology innovators and companies. For more information, visit www.advamed.org.