New Data Finds Medical Technology Industry Continues to Create High-Paying Jobs at Small Businesses Throughout COVID-19 Pandemic
WASHINGTON, D.C. – New data released today by the Advanced Medical Technology Association (AdvaMed) found that the medical technology (medtech) industry created more, better-paying jobs than the manufacturing sector overall. AdvaMed commissioned the new economic research report by Macro Policy Advisors to study the industry’s jobs footprint and economic impact on states, and the results were overwhelmingly positive for Americans.
The report determined that:
- Medtech directly employed 397,000 people, at an average annual salary of $88,096—49% higher than the average across all industries and 18% higher than the corresponding premium of all manufacturing jobs.
- Every 5 medtech industry jobs creates an additional 7 jobs.
- Between 2014-19, medtech employment grew by 4.1%, compared to a 3.3% increase in overall manufacturing employment.
- Of the nearly 15,000 medtech establishments, 94% were small businesses that employed fewer than 100 employees.
Economists also found that medtech is responsible for the creation of nearly 2 million jobs in the U.S. economy.
“The COVID-19 pandemic was a stark reminder of how critical medtech is to protecting patients and improving quality of life. This new data demonstrates that the industry creates not only lifesaving medical breakthroughs but also economic benefits to workers and state governments,” said Scott Whitaker, President and CEO of AdvaMed. “Thanks to medtech, patients spend fewer days in the hospital and live longer, better-quality lives, while workers in the industry earn higher salaries than most industries. These benefits should remain top of mind for policymakers exploring changes to the law that would affect our industry.”
Medtech revenues had multiplier effects on state revenues and state payroll. The report found that every $1.00 in medtech revenues generates roughly an additional $0.74 in total state revenues, while every $1.00 in medtech payroll led to an additional $0.94 in total state payroll. These economic benefits are particularly important to states experiencing reduced tax revenues caused by lockdowns during the coronavirus pandemic. For example:
- Medtech in California resulted in more than $32 million in state revenue and nearly $7 million toward state payroll, indirectly generating more than $56 million in state revenues and more than $13 million toward state payroll.
- Medtech in Minnesota led to $8 million in revenues, resulting in $13.8 million in indirect revenues, and $1.9 million in state payroll taxes, which generated $3 million in payroll taxes across the state.
- New York’s medtech industry created $5.2 million in revenues, which resulted in $8.3 million in state revenues, and more than $1.1 million in state payroll taxes directly—leading to a total effect of $2 million in state payroll taxes.
The report was produced by Macro Policy Advisors—an independent nonprofit organization that partners with private think tanks, academic institutions and policy advocacy organizations to develop unbiased investigations and reasoned responses to the macroeconomic policy concerns of today.
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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. AdvaMed members range from the largest to the smallest medical technology innovators and companies. For more information, visit www.advamed.org.