America's Medical Innovation Edge Is Worth Protecting
Few American industries embody what a serious manufacturing policy should look like better than medical technology. While policymakers debate how to bring critical production home, medtech is already there. It supports nearly three million jobs across 17,000 facilities in all 50 states, generates more than $250 billion in annual economic output, and supplies roughly 70% of the domestic market with American-made products.
TL;DR
- The U.S. medtech industry is a leader in domestic manufacturing, employing nearly three million people and generating over $250 billion in economic output.
- Medtech companies have invested heavily in domestic manufacturing, creating well-paying jobs and running trade surpluses with several countries.
- The industry's output funds innovation in critical areas like AI diagnostics and surgical robotics.
- Domestic production of medical equipment is vital for national security and public health, as seen during the COVID-19 pandemic.
- Reshoring advanced medical technology production involves complex regulatory processes that can take years, requiring realistic timelines and expectations.
- The U.S. imports most medical technology from allied nations, suggesting policymakers can be deliberate in developing domestic capacity.
- A tailored approach, including streamlining FDA reviews and prioritizing domestic inspections, is recommended for successful reshoring.
- Tariffs should be carefully considered to avoid creating new costs for companies already investing in American manufacturing.