Macro Environment Analysis
Industry definition: Medical Device Industry
Description of the trend (what is actually increasing or decreasing) | Pos. or Neg. Effect | Description of how this trend might affect average industry profitability |
Economic trends: | | |
With the maintenance of the Patient Protection and Affordable Care Act, manufacturers will face a 2.3 percent excise tax on all devices they produce. | Neg | With the 2.3 percent tax added on many companies will see their revenue will go down with the PPACA enforcing this rule upon the industry. |
Medical device volume is increasing | Pos | With the PPACA providing insurance coverage for millions of Americans, the ...view middle of the document...
Nation’s aging population. | Pos | As baby boomers live longer, they require more sophisticated and long-term health care. The changing health care needs for people over 65 are driving the growth of the industry. This has created demand for advanced medical devices and raised expectations that new technologies will enhance the quality and length of patients’ lives which is the goal of healthcare. |
Diversity – social / cultural trends: | | |
PPACA | Pos | Patient Protection and Affordable Care Act is allowing for more of our citizens who were uninsured to have the basic human care delivered to them and allows them to purchase more medical devices to help maintain or improve their lives’. |
Technology trends: | | |
New advanced manufacturing technologies | Pos | As these new technologies become more integrated into device manufacturing processes, the superiority of devices accelerates and will open up new clinical applications and fuel industry growth. |
Environmental Sustainability trends: | | |
(none identified) | | |
Global trends: | | |
The Medical Device Industry Education Consortium(MDIEC) | Pos | Is made up of ten community colleges in the U.S and Europe, also employer representatives from the medical...