The demand for medical equipment is surging and will grow significantly over the next decade. Analysts predict the market will expand from roughly $185-190 billion today to $310-315 billion by 2033. United Imaging, a medical imaging and radiotherapy equipment company with a large presence in Houston, Texas, is capitalizing on that positive trend. United Imaging global headquarters is in China, but they have a large North American operation with local headquarters in Houston. The company has announced that it is more than tripling its current manufacturing space in the Houston area, which was itself created only four years ago. The entire company was founded only in 2011, making its tremendous growth even more impressive.
United Imaging’s rapid growth is not entirely unexpected, as it has averaged a 60% annual employee increase over the past four years. The CEO, Jeffrey M. Bundy, credits the company’s growth with the growing nationwide demand for its products. He also credits the Houston location with helping United Imaging export its heavy-duty equipment, such as MRI machines, that can weigh over 10 tons each. And export the company has: its equipment has been installed in over 75 foreign countries. A total of more than 30,000 pieces of United Imaging equipment have been sold and set up at facilities worldwide.
Aging Population Spurs Demand for Medical Equipment
Unsurprisingly, America’s rapidly aging population is a key reason for the surging demand for medical equipment. The Baby Boomer generation is now firmly retired, with the oldest members approaching 80 years old. These retirees need more frequent and more advanced medical care, including complex imaging to detect internal injuries or infirmities. And it’s not just the elderly – younger Americans are also demanding more medical care than in past decades, especially in the health-conscious aftermath of the Covid pandemic.
Further increasing demand for medical equipment is the shortage of healthcare workers, meaning automation is highly desired by medical providers. A high-quality piece of medical equipment can maximize the output of fewer workers, helping reduce the harms of worker shortages. For example, MRI machines that process faster and require fewer staff members to operate can help overcome some delays in care.
Exporting Medical Equipment Plays to America’s Strengths
The United States is the world’s top exporter of medical equipment, with over $100 billion in such exports in 2023. Medical equipment is very complex and specialized, meaning the U.S. still has a comparative advantage in its production. However, other tech-invested countries are not far behind, especially tech competitors like Japan, South Korea, and Germany. Therefore, it would be prudent for the federal government to invest in assisting research, development, and manufacturing for domestic medical equipment companies. If America loses its competitive edge in medical equipment, it could be a substantial blow to an industry that supports almost two million jobs!
Medical equipment producers stand to benefit heavily from the CHIPS Act and applauded its passage in 2022. Semiconductors and microchips, a key focus of the CHIPS Act, are a major component of high-tech medical equipment. Despite tough competition from other developed countries, American medical equipment is still often considered the best in the world, making it a highly desired export market. The U.S. has a relatively rare trade surplus in this area, exporting more medical equipment than we import.
Image credit: United Imaging
