New MassMEDIC Study Concludes Medical Device Industry is Stabilizing Influence on the Massachusetts Economy

[Ma Massmedic via BizWire]

BOSTON--(BUSINESS WIRE)--April 30, 2004--

UMass economic analysis declares medtech industry's total economic
impact on state is $7.3 billion

The medical device industry in Massachusetts is both an ongoing
vital contributor and a stabilizing factor to the state's economy
during recessionary times, providing high paying manufacturing jobs,
contributing to total state exports, attracting significant amounts of
venture capital investment and utilizing local suppliers, according to
a new, detailed study to be released May 4th.
The study, funded by MassMEDIC, the Massachusetts Medical Device
Industry Council, is the most detailed analysis of the sector ever
done in the state. The new data indicate that from 1997-2002 the
annual shipments, an indicator of output for the industry, increased
by 25 percent from $4 billion in 1997 to $5 billion in 2002. In
addition, the total payroll of the medical device sector grew from
$989 million in 1997 to $1.24 billion in 2002.
"In addition to providing day to day growth generally for the
state's economy, our analysis shows the medical device industry has
been supporting the economy, especially in the difficult recession
years," said Professor Alan Clayton Matthews, director of Quantitative
Methods at University of Massachusetts Boston and lead researcher for
the study. "Given both the unique intellectual capital available from
local research institutions and academic health centers, and the
concentration of highly skilled workers located here in the state, the
medical device sector here in Massachusetts is well positioned to
continue its role as one of the most prosperous industries in the
state."
According to the study, which will be released at MassMEDIC's
annual meeting next Tuesday, the industry's impact goes far beyond the
employment and earnings of the medical device industry workers with
every 100 jobs in the medical device industry being associated with
another 79 jobs in Massachusetts and every dollar of medical device
output being associated with an additional 45 cents of outputs from
Massachusetts firms. In 2002, the total economic impact of the medical
devices sector in the state equaled $7.3 billion.
"Every day the impact of the Massachusetts medical device industry
can be felt across the country and the world as the industry creates
innovative products which are responsible for saving and bettering the
lives of millions of people each year," said Tom Sommer, president of
MassMEDIC. "In addition, this study further confirms the fact that the
medical device industry is critical to the strength of the
Massachusetts economy and should be supported by legislation and
regulations so that we can ensure its continued growth and expansion."
To review the full study please visit,
http://donahuemaps.admin.umass.edu/medical.html.

About MassMEDIC:

The Massachusetts Medical Device Industry Council, an organization
of 321 manufacturers and suppliers, promotes the unique interests of
the Bay State's growing and vibrant medical device sector. Through a
variety of programs, informational seminars, advocacy campaigns and
other projects, MassMEDIC provides medical device manufacturers and
suppliers with information on industry trends and regulatory policies,
and creates forums that allow members to exchange ideas and
information on issues affecting the industry. For more information on
MassMEDIC, please contact us at (617) 414-1340, or visit our web site
- www.massmedic.com.