German medical technology industry grows with lower earnings
According to the industry association Spectaris, the German medical technology industry achieved a nominal increase in sales of 5.4 percent last year. Overall, the industry generated 38.4 billion euros. However, earnings developed unfavorably in many cases: "Although sales are rising, the earnings situation of many medical technology companies is falling, particularly due to increased costs in all areas," emphasizes Dr. Martin Leonhard, Chairman of Medical Technology at Spectaris.
"Despite the numerous challenges, we expect the German medical technology industry to increase its sales again in 2023 – at least in nominal terms. The order books of many manufacturers were well filled at the beginning of the year, also due to delivery delays. The potential is still there," says Leonhard, summarizing the situation in the industry. "But the situation is becoming increasingly critical: there is a lack of personnel, whether in production or development, and in many cases products cannot be delivered on time due to the shortage of electronic components or even have to be redesigned and then re-approved. Bureaucracy has taken on worrying proportions, not only due to the new European Medical Devices Regulation, causing high costs and tying up urgently needed personnel capacity." In addition, there are further massive cost increases from all directions, which can only be inadequately passed on domestically due to the special features of the German healthcare system. And: With the planned ban on PFAS chemicals and other high-performance materials, numerous medical devices threaten to disappear from the market if no exceptions are granted for such essential areas of application.
Spectaris compiles the industry figures on the basis of data from the German Federal Statistical Office on German manufacturers of medical technology with more than 20 employees. The sales of homecare companies, suppliers, sales companies without a production site in Germany, and component manufacturers are not included.