German medtech sector sales grow 5.5% in 2010

12 Nov 2010

A survey by BVMed, the German Medical Technology Association, has found that sales of the German medical technology sector in 2010 have grown by 5.5%.

Companies in the German medical technology sector also continue to be strong on innovation and growth, creating new jobs.

The BVMed autumn survey included 139 member companies.

"The overall economic development of the industry is good. Over 80%of the Medtech companies surveyed expect to see sales growth this year outperform 2009. Growth in sales this year comes in at around 5.5%, compared to the previous year 2009, a year of crisis, when it rated 3%," explained Dr Meinrad Lugan, BVMed Chairman of the Board.

 However, the profit situation has been diminished due to a substantial rise in the prices of raw materials and a higher rate of late payments. Thus, companies are only cautiously optimistic in their outlook for 2011: 48% expect better profit results than this year; 17% actually expect to see a decline in profits.

The survey shows the medical technology sector to be a main driver of jobs as before. Half of the companies surveyed have created new jobs, compared to the previous year — 96% of companies have vacancies.

Dr Lugan continued: "In this way, the Medtech industry is not only making an outstanding contribution to the health sector but is also a source of hope for the German labour market."

When it comes to health-policy demands, the issue of "debureaucratization and accelerating decision-making" takes centre-stage — 60% of companies cite these aspects as the most important demands. This is mainly directed at the Joint Federal Committee. Accordingly, a quarter of the companies favour a reform of self-governing bodies — with a greater degree of political legitimacy, more transparency and rights of participation as well as clear time-limit provisions.

Overall, Germany is given good marks as business location by the Medtech companies. 60% see a high level of patient care. As examples of Germany´s great strengths are given: well-trained physicians (57%), a high standard of clinical research (48%), well-educated engineers (39%) and highly-qualified scientists (34%).

The majority of companies, however, see a weakness in the reimbursement system. Only a quarter consider the general conditions governing the reimbursement for medical products to be stable. Only 23% of the companies are satisfied with the level of reimbursement in Germany.