Medtech industry delivers for workers in Florida, thanks to policies that value innovation
August 26 2021 – New data released by the Advanced Medical Technology Association (AdvaMed) found that the medical technology (medtech) industry is a critically important employer in Florida and contributes billions of dollars to state revenues and payroll. AdvaMed commissioned a new economic research report by Macro Policy Advisors to study the industry’s economic impact on states across the country, and the results were overwhelmingly positive for Florida.
The 2019 repeal of the medical device excise tax has enabled the Florida medtech industry to excel. As a result of policies that value growth and innovation, medtech revenues have had countless benefits for Florida state revenues and payroll. These economic benefits are particularly important as Florida experiences reduced tax revenues caused by lockdowns during the coronavirus pandemic. For example:
- In 2020, the medtech industry contributed more than $1.2 billion in state payroll, which generated an additional over $1.1 billion in payroll across the state.
- In 2020, the medtech industry created more than $6.09 billion in Florida revenues, generating an additional over $4.3 billion in indirect revenues.
- Florida’s medtech industry employed 19,200 workers, generating an additional 26,100 jobs.
- In 2020, the medtech industry’s pay premium was higher than the average pay premium in 38 states, including Florida.
“This new data clearly shows that our industry not only creates lifesaving medical technologies but also generates tremendous economic benefit to Florida and its workers,” said Scott Whitaker, President and CEO of AdvaMed, the leading global trade organization for medical device manufacturers. “Repeal of the federal tax on medical devices has allowed the medtech industry to grow and employ more than 19,200 Florida workers, not to mention expand the critical research and development necessary to improve and save patients’ lives. As we begin to emerge from the coronavirus pandemic, we encourage state leaders to continue supporting policies that recognize the critical role medical innovation plays in the state and its workers’ lives.”
“This new report reaffirms the medtech sector’s leadership role in Florida’s manufacturing economy and the creation of high-wage, high-value-added jobs,” said John Ray, Executive Director of the Florida Medical Manufacturers Consortium (FMMC). “The vast majority of Florida medical device manufacturers are small, entrepreneurial firms, employing fewer than 25 people. These are the companies driving Florida’s job creation and innovation in patient care, and policymakers should continue to nurture them through sound public policy and business climate improvements.”
“Florida is a leader in the MedTech industry driving Florida’s economy forward with high-paying jobs while providing valuable innovation to improve patient health,” said Nancy K. Bryan, President and CEO of BioFlorida, the voice of Florida’s life sciences industry, representing 6,700 establishments and research organizations. “Florida’s life sciences ecosystem is large, growing, and contributing to groundbreaking research and discoveries led by a strong base of MedTech, BioPharma, and some of nation’s most highly regarded research institutions and universities.”
The study also finds that the medtech industry has had overwhelmingly positive impacts on workers across the nation. The economists determined:
- Nationally, medtech employed 438,000 people, at an average annual salary of $88,096—49% higher than the average across all industries and 18% higher than the corresponding premium of all manufacturing jobs.
- Every 5 medtech industry jobs create an additional 7 jobs across the country.
- Between 2014-19, national medtech employment grew by 4.1%, compared to a 3.3% increase in overall manufacturing employment.
- Of the nearly 15,000 medtech establishments across the nation, 94% were small businesses that employed fewer than 100 employees.
The report was produced by The Macro Policy Institute (MPI)—an independent nonprofit organization that partners with private think tanks, academic institutions and policy advocacy organizations to develop unbiased investigations and reasoned responses to the macroeconomic policy concerns of today.
AdvaMed member companies produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments. AdvaMed members range from the largest to the smallest medical technology innovators and companies. For more information, visit www.advamed.org.
