Note from the Editor

It was not a good year for Ireland, to be sure, but the commotion surrounding bailouts and bubbles did drown out some encouraging news. Specifically, Ireland’s medical technology sector and associated supply chain, much of which is clustered in and around Galway, fared remarkably well through the entire mess. It’s a story that must be told, says the indefatigable Sharon Higgins, Director, Irish Medical Devices Association (IMDA).

“The economy remains on track to recover in 2011, largely on the back of a stronger contribution from the export sector,” says Higgins. “Exports of medical technology products from Ireland grew by more than 9% in 2009 over 2008. Ireland is the second largest exporter of medical technology products in Europe,” she stresses.

"The movement of foreign exchange is broadly heralded as a negative,” says Paraic Curtis, Vice President, Endoscopy Div., EMEA, at Boston Scientific and IMDA Vice Chairman. “However, for the Irish medtech industry, which is a huge net exporter, this has been a very positive trend,” says Curtis.

By all accounts, as long as the global economy maintains upward momentum, even on a modest scale, Ireland’s export-driven medtech sector will continue to flourish. There are internal drivers, as well.

“The recent austerity budget left the corporate tax rate unaffected,” says Eoin Barry of ARV Excellence, a Galway-based company that trains personnel on quality and performance issues. “Ironically, the downturn may have a silver lining for companies engaged in the export-oriented medical device manufacturing sector, as deflationary effects have reduced the local cost base.”

David Gillen of Blueacre Technology, a supplier of laser-based micromachining services, shares Barry’s perspective. “By going through the economic and budgetary adjustments now and increasing our competitiveness, Ireland may be better placed to survive any future global downturn,” he says.

Stryker Orthopaedics Ireland applied that philospophy, in some respects, by undertaking “an extensive review of operations,” says company Vice President and General Manager and IMDA Chairman Gerry McDonnell. “We emerged a more productive, innovative and competitive company,” he says. McDonnell is confident that those three adjectives will continue to define Ireland’s medtech sector as a whole. And so am I.

Norbert Sparrow
norbert.sparrow@cancom.com