Most Memphians know that the medical device sector has a significant presence in Memphis. According to MBJ research, Smith & Nephew Inc. has 2,865 employees in the area, Medtronic Spine & Biologics has 1,400, and Stryker has 700.
Promising young companies like Sweet Bio and SOMAVAC Medical Solutions, meanwhile, are continuing to grow and build excitement around their products.
Still, not everyone knows just how much of an impact the industry has on the local economy. A new study from the research and marketing agency Younger Associates brings the sector's prominence to light and details how much it has grown.
Detailing the industry’s local effects between 2015 and 2022, the study found that the medical device industry has an annual economic impact in Shelby County of $4.06 billion; and currently supports 18,762 jobs — 7,895 directly and 10,867 indirectly.
That total represents 3.4% of all the jobs in Shelby County; and the average wage of people directly employed by the industry is $103,568, 39.7% higher than the county’s average wage for all sectors. Companies and employees in the medical device industry are also set to contribute almost $49.7 million in taxes in 2022, up from $46 million in 2015.
The study was released by the Greater Memphis Medical Device Council (GMMDC).
“Medical device companies in Tennessee and especially in Greater Memphis are taking the lead on innovations that will change lives across our nation,” Gwyn Fisher, Greater Memphis regional director of the Tennessee Department of Economic and Community Development, said in a press release. “We’re proud to be a destination for this industry and we’re excited for the future we’re building.”
The industry’s presence has grown over time, too. Since 2015, 53 medical device companies have added 1,939 jobs — 1,408 direct jobs and 531 indirect ones — and increased wages by $260 million. Its GDP growth in the county has risen by $1.4 billion over the past seven years, bringing its overall share of economic output in the county from 3.7% to 5.5%.
And, during that time, the industry’s contribution to the GDP has grown 24.5%.
The study was released on the first day of the annual Musculoskeletal New Ventures Conference, which is sponsored by MB Venture Partners, and held in the FedEx Institute of Technology at the University of Memphis. Returning to an in-person format this year, the event brings together investors, startup founders, medical device executives, and other representatives from the industry, to share information about musculoskeletal research.
