EIA sees U.S. electromedial equipment factory sales in rebound

Electronic News, June 12, 1995

ARLINGTON, VA. After a slight gain of 1.6 percent in 1994, U.S. factory sales of electromedical equipment are forecast to rebound in 1995 growing 5 percent, according to Todd Thibodeaux, senior economist with Electronic Industries Association. Total U.S. factory sales of electromedical equipment for 1994 reached $9.2 billion.

"We expect nearly all the growth in the electromedical sector will come from a 10 percent increase in exports," said Mr. Thibodeaux. "On the domestic front, the failure of Congress to pass a comprehensive healthcare bill alleviated some manufacturers' concerns over the future of U.S.healthcare, but pressures to reduce overall spending continue unabated."

Total U.S. exports of electromedical equipment increased 19 percent in 1994 to $4.3 billion, while the import market remained relatively constant, decreasing slightly from $2.4 billion in 1993 to $2.3 billion. One of the fastest growing subsectors of electromedical equipment exports in 1994 was electromedical instruments, appliances and parts, which grew 113 percent to $314.8 million.

According to Gene Lussier, EIA group VP, "Foreign customers are a very important part of the equation, accounting for about 40 percent of sales from U.S. based production. The lack of modern medical equipment in the former Communist countries of Central Europe and most of the non industrialized nations, has created a potentially large market for U.S. medical electronics. Privatization of industries in these countries will provide excellent opportunities for electromedical manufacturers in the future."

Although their markets account for a small share of U.S. exports, as a group, these nations are experiencing tremendous growth. Five of the top ten fastest growing markets for U.S. electromedical equipment, as forecast by the U.S. Department of Commerce, are in Eastern Europe and the rest are developing countries. Such U.S. exports to Central Europe increased 52 percent to $73.4 million in 1994.

"Technological superiority, high quality and reliability of U.S. electromedical equipment gives U.S. produced equipment a competitive advantage on the world market," said Mr. Lussier.

The top five U.S. electromedical equipment export markets of Japan, Germany, Canada, Netherlands, and France, totaling $2.2 billion, represented more than 50 percent of electromedical exports. The Asian market for U.S. exports continued to grow in 1994; exports to Korea, Singapore, Taiwan, and Malaysia totaled $303 million, with the U.S. maintaining a favorable balance of trade.

Meanwhile, the EIA's Medical Electronics Manufacturers Division (MEMD) plans to launch a statistical program to measure factory sales and quantities of certain electromedical equipment.

The division currently assists members in streamlining approval processes for new electronic medical devices, and assists manufacturers in formulating standards for medical electronics and software, including coordination with domestic and foreign standard setting bodies.

For More information on the MEMD, contact EIA Staff Director Simon Patrick carr at 703 907-7538.