In Minnesota, the land of 10,000 medical device companies (a bit of an exaggeration), we are always monitoring the outlook for our health technology market. Recent posts include: Minnesota: A Medical Device Ecosystem, Land of 10,000 Opportunities and This is Bunk.
In this post we will look at the good, the bad and the challenging of the Minnesota health technology market outlook.
First the good news:
- Per capita Minnesota is still the largest health technology market in the world and has more patent grants and applications than anywhere else
- The medtech industry is projected to grow at CAGR of 5.2% between now and 2022
- Business development activity is booming with 2017 positioned to be the second biggest year in medtech mergers and acquisitions in a decade
- The FDA’s efforts to streamline clearance of new devices are showing results. 2017 is on track for an all time high for innovative device approvals; with Minnesota still leading the way in time to 510(k) clearance and number of PMA’s.
Now for the bad news:
- The U.S. Bureau of Labor Statistics is estimating a CAGR of .6 annually in the overall national employment for the next 10 years – a significant mismatch between the projected growth rate for the medtech industry and the number of employees available.
- The Minnesota health technology market outtlook is facing a looming shortage of qualified workers.
- Baby boomers are retiring.
- Universities are not churning out enough qualified engineers and technology experts.
- Minnesota is experiencing the lowest unemployment rate in years – 3.8% compared to the U.S. rate of 4.3%.
Challenging but doable – here are a few suggestions:
- Develop and overall strategy for maintaining and recruiting employees.
- Consider looking outside of the medtech industry for workers
- Develop a robust strategy for attracting and keeping older employees. Baby (Boomer) Come Back!
- Support initiatives like the federally funded Minnesota Medical Manufacturing Partnership and Greater MSP’s “Make it. MSP” programs that spread awareness of the market and jobs.
- Utilize H-1B visas as a way to get individuals who have STEM (science, technology, engineering and math) into the United States.
- Leverage the network of your current employees and ensure your referral bonuses are at market rates.
About Talencio: We help the Health Technology community make progress by putting the right people in the right place to solve problems and identify opportunities to move healthcare forward. To learn more about career opportunities in health technology, or to hear how other companies have partnered with Talencio to tap into our skilled professional talent pool, contact us at 612.703.4236 or email. Talencio has been the preferred provider of vetted, accomplished professionals to the Health Technology Community for over 9 years.