Our region's Medical Equipment and Supplies cluster, although small, constitutes one of the fastest growing segments of our economy3. Since the 1970s, the instrument industry witnessed dramatic employment growth, expanding from 500 workers to more than 2,500 workers in 1995. From 1989 to 1995 the local instruments sector grew at a rapid 6.9 percent during a time when the U.S. industry as a whole was actually declining at 3.2 percent a year. Although medical instruments is one of the region's fastest growing manufacturing sectors, instruments account for only 0.8 percent of the region's total employment and 3.7 percent of the region's manufacturing sector. Size notwithstanding, the industry contributes a vital part of the region's export base. Virtually all of its 2,500 workers produce for customers located outside of the region. For every new employee in the industry, another worker is hired in the region.

The local medical equipment and supplies cluster is dominated by Stryker Corp. which doubled in size with the recently purchased Howmedica, the orthopedic division of Pfizer Inc. However, other local companies also manufacture and innovate a wide range of products. Imagyn Medical Technologies is constantly introducing new minimally invasive surgical instruments including an optical aspirating curette used in gynecology. Century XXII Engineering Inc. opened a new plant to manufacture prosthetic products.

Our region's medical equipment and supplies cluster may provide a valuable resource to further expansion in terms of attracting new firms such as relocating branch plants or start-up companies and higher value added business capacity such as R&D and product development. These new capacities, together with the local health services cluster, could further deepen this highly competitive component of our economy.

Benchmarking: How Do We Compare?

Employment growth looks strong and earnings growth weak for the medical instruments sector. Since these data are not directly comparable to the Medical Equipment and Supplies Cluster, conclusions will have to wait until our next report when we hope to have comparable data.