BVMed Annual Report: Good Times, Bad Times

How important is the domestic medical device industry to the German economy as a whole? Germany’s industry association BVMed did the numbers in the recently published 2009/2010 annual report. To wit:

• Approximately 10% of jobs in Germany are healthcare related.
• Healthcare spending represented 10.4% of gross domestic product in 2007, and it continues to climb. Surprisingly, perhaps, the life sciences are a more significant sector in terms of GDP share than the automotive industry, according to BVMed.
• Germany’s medtech sector grew by nearly 4% in 2009 while much of the rest of the economy teetered on the brink.
• Germany is the second largest exporter of medical technology in the world, behind the United States but well ahead of Japan.

Despite this abundance of good news, BVMed cautions against complacency. In a survey it conducted in October 2009, BVMed found that less than half (46%) of German medical device manufacturers expected market conditions to improve in 2010. Indeed, 15% expected sales to decline.

When asked how the economic and financial crisis would directly affect their business, members of industry overwhelmingly (80%) feared a “continued increase of price pressure on products and services in 2010.” Many companies are taking preventive measures: 23% have initiated a hiring freeze and 30% have postponed investment.

In addition to overall market conditions, the 24-page report focuses on specific areas of interest including DRGs and hospital financing, health technology assessments, technical aids (medical devices), homecare and legislative developments. It can be downloaded in a PDF format from the association’s website.

Tags: business survey, BVMed, German industry