BioSpace.com

Biotech and Pharmaceutical
News & Jobs
Search the Site
 
   
Biotechnology and Pharmaceutical Channel Medical Device and Diagnostics Channel Clinical Research Channel BioSpace Collaborative    Job Seekers:  Register | Login          Employers:  Register | Login  

NEWSLETTERS
Free Newsletters
Archive
My Subscriptions

NEWS
News by Subject
News by Disease
News by Date
PLoS
Search News
Post Your News
JoVE

CAREER NETWORK
Job Seeker Login
Most Recent Jobs
Browse Biotech Jobs
Search Jobs
Post Resume
Career Fairs
Career Resources
For Employers

HOTBEDS
Regional News
US & Canada
  Biotech Bay
  Biotech Beach
  Genetown
  Pharm Country
  BioCapital
  BioMidwest
  Bio NC
  BioForest
  Southern Pharm
  BioCanada East
  US Device
Europe
Asia

DIVERSITY

INVESTOR
Market Summary
News
IPOs

PROFILES
Company Profiles

START UPS
Companies
Events

INTELLIGENCE
Research Store

INDUSTRY EVENTS
Biotech Events
Post an Event
RESOURCES
Real Estate
Business Opportunities

 News | News By Subject | News by Disease News By Date | Search News
eNewsletter Signup
Miles
Km80.5

   

MN in Line to Win Overseas Med-Tech Jobs, The Boyd Co. Inc. Reports


5/25/2011 8:06:17 AM

Medical device jobs will be “washing back on U.S. shores” from overseas over the next decade due to security and privacy issues, according to a report.

That may be good news for the Twin Cities, which is “the epicenter of the U.S. medical devices and supplies industry,” according to the report by consulting firm The Boyd Co. Inc.

Boyd forecasts that thousands of assembly and control jobs within the medical device and supplies industry will return from places like China, India and the Caribbean Basin due to security issues, greater scrutiny by the Food & Drug Administration, heightened patent, counterfeiting and privacy concerns and other reasons.

It would be a natural for many of those jobs to come to the Twin Cities, which Boyd said employs about 28,000 workers in med tech. The Twin Cities area is home to med-tech giants such as Medtronic Inc. (NYSE: MDT), St. Jude Medical Inc. (NYSE: STJ), and 3M Healthcare (NYSE: MMM), among others.

“From a site-selection viewpoint, the Twin Cities benefit from its large life-sciences workforce, mid-continent logistics, geographic neutrality, access to I-35 — “the NAFTA Superhighway” — hub operations of Delta Air Lines and excellent life science institutions like the University of Minnesota,” according to the report from the Princeton, N.J.-based consulting company.

But the report also had a warning for the Twin Cities: Costs.

While the report said the Twin Cities area is moderately priced when it comes to the cost of operating a medical device company, there are other regions in the Midwest that are cheaper while also providing competitive life science centers.

According to the report, those areas include:

Rochester, Minn., home of the Mayo ClinicMadison, Wis., home of the University of Wisconsin and a cadre of medical-device startups

Kalamazoo, Mich., home of Stryker MedicalSioux Falls, S.D., home of Sanford and Avera Medical Research Centers. “Top U.S.-ranked Sioux Falls is distinguished by its lack of a state corporate and personal income tax and South Dakota’s Right-to-Work labor climate,” the report said.

The report said it costs $26.2 million annually to operate a med-tech facility in the Twin Cities. That ranked 17th in the group’s study of 55 life-science centers worldwide.

San Jose, Calif., ranked most expensive at $30.7 million. Rochester’s cost was $25.3 million, Kalamzaoo $25.1 million, Madison $24.7 million, and Sioux Falls $22.6 million.

Cheapest was Maquiladora, Mexico, at $16.9 million.

The study used a hypothetical 175,000-square-foot production plant employing 325 workers.

“Where these medical devices jobs wash back on U.S. shores will largely be led by labor issues, i.e., costs, local skill sets and labor-management relations as well as state tax climates,” the report said.

The report also noted that the 2.3 percent tax on medical devices that helps pay for President Obama’s health care overall is another hurdle that U.S. cities have when competing for medical device jobs.

Read more: Report: MN in line to win overseas med-tech jobs | Minneapolis / St. Paul Business Journal



Read at BioSpace.com

 
 

ADD TO DEL.ICIO.US    ADD TO DIGG    ADD TO FURL    ADD TO STUMBLEUPON    ADD TO TECHNORATI FAVORITES