MEDICAL DEVICE MARKET IS EUROPEAN MANUFACTURING SUCCESS STORY

Despite the ongoing manufacturing recession in the eurozone, manufacturers of devices for the medical industry remain in buoyant mood, according to recent European research.

(PRWEB) October 16, 2003 --Despite the ongoing manufacturing recession in the eurozone, manufacturers of devices for the medical industry remain in buoyant mood, according to recent European research.

An independent study of 150 European medical device manufacturers was conducted on behalf of Medical Device Technology (MDT) 2004, the UK's leading exhibition & conference for the design, regulation and manufacture of medical devices and in vitro diagnostic products. This study looked at the trends in the European medical device market, which is now worth an estimated 55 billion euro*.

Against a gloomy climate for the European manufacturing industry in general, with sales falling at their fastest rate in many years, the medical device market stands out as a significant success story with ambitious pans for the future. Only one third of companies questioned in the research say that they have been adversely affected by the manufacturing decline. In the UK, this represents fewer companies than last year who suffered the negative effects of the downturn.

Europe's largest economy, however, appears to have been more acutely affected. The German manufacturing industry has been in stagnation for several years and even the relatively buoyant medical devices market has suffered from this sustained weakness. Whilst two-thirds or more of companies in the UK and the rest of Europe say they have not experienced the adverse effects of the recession, 40% of German companies say that they have suffered.

Despite the prevailing optimism among European medical device manufacturers, the research does reveal some signs that the lacklustre economy has had some negative effects across the region. Whilst a good proportion of companies (63%) have produced and innovative product or service in the last year, this figure is down from 72% in last year's study. German companies came off worse again with only 51% having introduced an innovative product or service in the last year.

That said, the overall picture painted by the research is a very positive one for medical device manufacturers across Europe, particularly when looking at the business plans for the next two years. The vast majority (82%) of medical device companies are planning a new product launch, 67% are anticipating expansion into new overseas markets, 58% intending major capital investment and 57% are looking to expand their existing premises. The UK in particular emerges as very confident. For instance, 86% of companies are planning a product launch, 28% more than last year; 77% are planning to expand into new markets, compared to just 56% last year and 63% foresee a major capital investment, 19% more than last year.

Whilst Germany's plans are slightly more conservative than companies in the UK and the rest of Europe - only 16% of German companies will be seeking venture capital compared to 34% in the UK and 29% in the rest of Europe - they are still looking to expand, and will probably get their strength from domestic growth and mergers and acquisitions. Nearly two-thirds of German companies will be looking to expand their premises, compared to less than half of UK companies, and 30% are planning a merger, whilst just 11% of UK companies have this in mind.

Investment plans are also bold; a reflection of the confidence the industry has in future growth. Over a quarter of respondents will be seeking venture capital in order to assist with business expansion over the next two years. This represents a 6% increase on last year's forecasts. This figure rises to 37% among companies with a turnover of 1.5m or less - a sector where recession is usually most hard-felt. Another key indicator of a thriving market is the investment in research & development and nearly half (45%) expect this budget to increase over the next two years - a result that is consistent with last year's study.

With so much of the industry predicting strong growth and investment over the next couple of years, competition will be fierce. So it comes as little surprise that respondents' business priorities once again centre around product development for new and existing markets. Also high on the agenda is investment in sales and marketing with over two-thirds (69%) stating that these budgets will increase over the next year and no one expects them to decrease. Other areas set to see an increase in budgets include the internet, IT and design.

For more information about MDT 2004, which will be held on the 11th - 12th February 2004 at the NEC, Birmingham, or to pre-register visit www.mdtevents.com or contact Chris Mott on, +44 (0) 208 987 0938 or email cmott@advanstar.com.

Pre-registered visitors will gain entry to MDT 2004, free of charge, a copy of the report and will also be able to visit co-located shows: 3C (Contamination Control & Cleanroom Products), Electronic Information Displays, Industrial Networks, IPOT (Image Processing and Optical Technology), Machine Vision, Machine Building, MTEC (Sensors, Measurement & Instrumentation) and Practical Vacuum.

*Source: Eucomed
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