Industry Analysis & Industry Trends
Given its financial stability and abundant resources, Canada has the potential to grow into a hub for medical device innovation. Canada is home to some of the world's most recognized scientific research institutions and a large number of experienced, highly trained researchers. These strengths, coupled with government tax incentives for medical technology development, will lead to revenue to growth in the five years to 2021. Consolidation activity will likely remain robust, although not due to the economic hurdles the industry faced in the past; instead, most acquisitions will be spurred on by a desire on behalf of large companies to acquire the most cutting-edge technological developments... 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, $0.10 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 increases 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 18.6% of revenue.
Depreciation costs represent 1.8% of revenue. The larger operators within the industry frequently acquire small companies to broaden their range of products and markets, which raises capital expenditure... purchase to read more