Industry Analysis & Industry Trends
The five years to 2014 have been difficult for the Medical Device Manufacturing industry. While industry products are nondiscretionary, the recession and its effects on key exports markets along with slow growth in total health expenditure negatively affected the industry. However, because Canada houses some of the world's best scientific research institutions as well as a great deal of experienced researches, the next five years are expected to generate better conditions for the industry overall... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a medium level of capital intensity; for every $1.00 spent on wages, $0.06 is invested in capital improvements. Medical device manufacturers produce a range of products for highly specialized applications. Not all products can be manufactured on an automated production line, so the need for hands-on work increase labour costs. Skilled specialists are needed to research and develop medical devices, and these employees command salaries well above the manufacturing sector's average wage. Wages account for about 31.5% of revenue.
Depreciation costs represent about 1.8% of revenue. The larger firms within the industry frequently acquire small firms to broaden their range of products and markets, which raises capital expenditure... purchase to read more