Technology industry

The medical technology industry continues to create well-paying small business jobs throughout the pandemic

July 29, 2021 — New data published today by the Advanced Medical Technology Association (AdvaMed) found that the medical technology (medtech) industry created more better-paying jobs than the manufacturing sector as a whole. AdvaMed commissioned Macro Policy Advisors’ new economic research report to study the industry’s employment footprint and economic impact on states, and the results have been overwhelmingly positive for Americans.

The report determined that:

  • Medtech directly employed 397,000 people, earning an average annual salary of $88,096, 49% above the average for all industries and 18% above the corresponding premium for all manufacturing jobs.
  • Every 5 jobs in the medical technology industry creates 7 additional jobs.
  • Between 2014 and 2019, employment in medical technologies increased by 4.1%, compared to a 3.3% increase in overall manufacturing employment.
  • Of the approximately 15,000 medical technology establishments, 94% were small businesses with fewer than 100 employees.

Economists also found that medical technology is responsible for creating nearly 2 million jobs in the US economy.

“The COVID-19 pandemic has been a stark reminder of the importance of medical technology in protecting patients and improving quality of life. This new data demonstrates that the industry is not only creating vital medical breakthroughs, but also economic benefits for workers and state governments,” said Scott Whitaker, President and CEO of AdvaMed. “Thanks to medical technologies, patients spend fewer days in hospital and live longer and better lives, while workers in industry earn higher wages than most industries. These benefits should remain a priority. for policy makers who are considering changing the law that would affect our industry.”

Medical technology revenues have had multiplier effects on state revenues and payrolls. The report found that every dollar of medical technology revenue generates approximately $0.74 more in total revenue for the state, while every dollar of medical technology payroll resulted in a $0.94 increase in the total state wage bill. These economic benefits are particularly important for states experiencing lower tax revenues caused by lockdowns during the coronavirus pandemic. For example:

  • Medical technology in California generated more than $32 million in revenue for the state and nearly $7 million for the state payroll, indirectly generating more than $56 million in revenue for the state and more than $13 million for the state payroll.
  • Medical technology in Minnesota generated $8 million in revenue, consisting of $13.8 million in indirect revenue and $1.9 million in payroll taxes, which generated $3 million in payroll taxes statewide .
  • New York’s medical technology industry generated $5.2 million in revenue, resulting in $8.3 million in state revenue and over $1.1 million in payroll taxes from the state directly, resulting in a total effect of $2 million in state payroll taxes.

The report was produced by Macro Policy Advisors, an independent non-profit organization that partners with private think tanks, academic institutions and policy advocacy organizations to develop unbiased investigations and reasoned responses to policy concerns. macroeconomics today.

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