Medical Equipment Manufacturing Industry Report
Detailed Guidelines For Industry Report
1. Industry performance over the past 5-years
Display industry financial performance data using graphs or table and place in appendix. Then refer to the key points in the text. Focus on the Medical Equipment Manufacturing Industry in the United States. Focus on industry data rather than on data from any specific company.
Note: Need to cite all sources used
1. Industry major competitors
List of 5 major competitors can be presented in bullet form and their market shares can be presented in a pie chart. Other details can then be described – in all instances try to use bullet form to present the material.
Label the graphs and charts and sources of reference should be clearly stated.
Note: Need to cite all sources used
2. Industry environmental characteristics
a. General environmental conditions
Focus on the Medical Equipment Manufacturing Industry. (Use the PESTEL framework)
Identify the factors that most significantly impact the industry and not on the company you are studying. Focus on the impact and not on how the company should respond to these forces.
Be very specific about how the PESTEL factors actually impacts the industry – Stay away from general description of the effect of the PESTEL factor.
Use bullet form to present the material.
Note: Need to cite all sources used
b. Industry structural characteristics
Focus on the Medical Equipment Manufacturing Industry. (Use Porter’s 5 forces model and complements)
In analyzing the industry conditions, describe the nature of each force followed by some supportive data points in bullet form. For example:
Threat of new entry is low
• High capital investments – state amount
• Economies of scale in advertising – cost differences
• Product differentiation – quality, variety, image
Your description of Porter’s 5 forces should not be too brief and too general, Use bullet form to present your ideas.
Note: Need to cite all sources used
Future Directions –
Focus on the Medical Equipment Manufacturing Industry.
Use sub-headings. Under each of the sub-headings: Use bullet form to present your ideas.
a. Drivers of industry change
b. Opportunities
c. Threats
d. Industry attractiveness
Present your list of references
Sample Solution
The Medical Equipment Manufacturing Industry has seen a significant growth over the past 5-years. According to Statista (2021), total U.S. industry revenue increased from $94 billion in 2017 to $133 billion in 2020, representing an annualized growth rate of 6.5%. This increase is mainly attributed to advances in technology and a growing demand for specialized medical equipment such as MRI machines and artificial organs, which have pushed up profit margins significantly. Furthermore, rising healthcare costs due to aging populations across the globe also played a role in driving up sales volumes during this time period.
Additionally, the number of employees working within this industry also rose steadily over the five year period according to data obtained from IBISWorld (2021). In fact, employment levels rose by 8% between 2016 and 2021 with roughly 680 thousand people employed at present (IBISWorld 2021). This demonstrates that there is strong demand for workers with skills related to production, engineering and design within this sector due to its reliance on cutting edge technology.
Furthermore, wages paid within the Medical Equipment Manufacturing Industry were fairly competitive when compared with other industries operating similarly sized operations (U.S Bureau of Labor Statistics 2018). For example In 2018 manufacturing sector salaries averaged around $50 thousand per annum while those working within medical equipment manufacturing averaged slightly higher ($55 thousand) indicating that their skills are valued more highly than those possessed by their counterparts elsewhere (U.S Bureau of Labor Statistics 2018).
Overall, it is apparent that the Medical Equipment Manufacturing industry has enjoyed significant growth over recent years owing largely due technological advancements and aging demographics across many countries leading greater demand for specialist products . Consequently , this represents lucrative opportunity investors wishing enter burgeoning market.
