Medical device industry poised to withstand an economic slowdown, experts say

While procedures volumes may decline, analysts said the effects likely won’t reach levels seen in 2020 or during the Great Recession.

Medical device companies are poised to weather an economic slowdown even as they continue to face hurdles linked to the pandemic such as persistent supply chain woes and staff shortages, analysts say.

While device makers aren’t completely immune to potential recessionary pressures, the industry should be fairly resilient to a deepening downturn, according to Shagun Singh, an RBC Capital Markets analyst.

“I think there are a lot of puts and takes by company to consider,” Singh said. “But there’s definitely a lot of opportunity given that there is the defensive element in healthcare and medtech.”

While economists and politicians debate whether the U.S. has fallen into a recession, indicators suggest the economy is cooling after two straight quarters of declining GDP. Meanwhile, surging inflation and interest rates also are contributing to a slowdown as consumer spending wanes.

Those economic factors may curb consumer spending on devices and result in a drop in nonemergency care, similar to what transpired in 2020 amid the COVID-19 pandemic, analysts say.

At the same time, the healthcare environment is considered more insulated — especially since 2008 and 2009 — with more people having insurance coverage under the Affordable Care Act (ACA) and stronger safety-net programs like Medicaid expansion.

By Ricky Zipp | MedTech Dive

Image Credit: Getty Images


About Peter Coffaro 510 Articles
Peter Coffaro is a growth-driven and strategic executive with over 25 years of progressive management success in the medical device industry. With a proven track record and recognized expertise, Peter has established himself as one of the top influencers in medical sales, as acknowledged by prestigious publications such as the World Journal of Orthopedics, Exponential Healthtech, and Throughout his career, Peter has accumulated 10 years of combined sales management experience, excelling in various roles including Director, General Manager, Distributor, and Vice President. He has worked for industry-leading orthopedic companies such as Zimmer, DePuy, and Stryker, solidifying his deep knowledge and network within the field. Peter’s passion for innovation and emerging technologies led him to found OrthoFeed, an award-winning blog covering digital orthopedic news and emerging medical technologies. Through this platform, he stays at the forefront of the industry and contributes to the dissemination of valuable insights. Peter is a three-time Hall of Fame award winner at Johnson and Johnson, demonstrating his exceptional contributions and impact on the organization. His expertise extends to areas such as organizational development, business development, sales management, digital marketing, and professional education. Peter earned a B.S. degree in Biology and Chemistry from Northern Illinois University, further complementing his comprehensive understanding of the medical field. With his wealth of experience, strategic mindset, and dedication to advancing healthcare, Peter Coffaro is a valuable asset and leader in the medical device industry.

1 Comment

  1. Quite comical … You had to put a plug in for the disastrous Obamacare which has decimated healthcare delivery and the wider American economy. Being in the clinical trenches everyday, I see how disconnected you are from reality.

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