European medical device sector has positive outlook

Europe's medical device manufacturers are increasingly positive about the business outlook, according to research carried out by Octomedia, organisers of the Medical Device Technology (MDT) exhibition and conference and 3C exhibition, due to take place on 16-17 February 2005 at Birmingham's NEC.

Already worth an estimated €55.2bn (Eucomed Medical Technology Brief, 2004), this sector is set to grow still further, with more than a third of European medical device and in vitro diagnostic (IVD) manufacturers having benefited from an upturn in manufacturing over the past year. Nearly two-thirds say they have produced an innovative product or service in the past 12 months and current business priorities focus on developing new products for new and existing markets. Product launches also feature heavily in medical manufacturers' future business plans as does expansion into overseas markets - 77% and 52% respectively are planning these. Interestingly, the few manufacturers who have been adversely affected by the manufacturing decline appear to have turned the situation to their advantage by creating a niche market within their sector or by gaining greater market share through technology and innovation. According to the research, these are the companies most likely to have produced an innovative product within the past 12 months. Comparison with the 2003 MDT European Market Research Study suggests that manufacturers are planning more focused activities for the coming year. Over the 12 months, more companies will be concentrating on product launches and overseas expansion, and fewer will be diverted by a range of other activities such as capital investment, expanding premises and e-commerce, than in 2003. Perhaps unsurprisingly, it is larger firms (those with R&D budgets in excess of €100,000) that are more likely to be planning product launches. However, smaller firms are in equally buoyant mood; they are more likely to be focusing on growth through venture capital, e-commerce, acquisitions and domestic mergers. A healthy level of merger and acquisition activity is to be expected in a fiercely competitive marketplace such as medical device manufacturing as smaller companies ensure that they are robust enough to compete against larger players by pooling resources and sharing expertise. The positive outlook revealed by the research is set to continue into the future with more than half (55%) of respondents expecting that their R&D budget will increase over the next year (only 8% predict a decrease). This compares with just 45% who predicted an increase in last year's study. Budget increases are also planned for sales & marketing (56%), manufacturing equipment (52%) and design (51%). In each case, only very small percentages predict a decrease. MDT 2005 is co-located with 3C, which is the UK's only dedicated event for buyers and suppliers of contamination control and cleanroom products and services. Under new management, 3C 2005 will showcase the latest products and services from cleanroom design and construction through to clothing, equipment and consumables. A new feature of the 2005 event is the introduction of cleanroom testing and cleanroom technology courses organised by the Scottish Society for Contamination Control and presented by industry expert Bill Whyte. The cleanroom testing course will focus on the reasons and techniques for validating a cleanroom and give insight into validation standards. The cleanroom technology course will cover all aspects of cleanroom technology for those relatively new to the subject, or who wish to brush up their knowledge.